Amazon, Alphabet, Meta, Microsoft Face Cash Flow Decline Amid AI Spending

Amazon, Alphabet, Meta, and Microsoft are experiencing a significant drop in free cash flow, reaching its lowest level since 2014, due to heavy investments in artificial intelligence, according to BeInCrypto. Morgan Stanley estimates that these tech giants, along with Oracle, could spend nearly $805 billion this year on AI, with forecasts for next year rising to $1.1 trillion. Analysts predict Amazon will spend more cash than it generates, with a projected $10 billion cash burn. Meta is also expected to face cash challenges, while Alphabet remains cash flow positive but at its weakest level in over a decade.