The combined free cash flow of the four “hyperscalers” — Amazon, Alphabet, Microsoft and Meta — is expected to fall to roughly $4b in the third quarter, according to Wall Street’s forecasts, down from an average of $45b in each quarter since the Covid-19 pandemic six years ago.
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Big Tech’s $725b AI spending spree sends free cash flow to a decade low
“This is the deepest industry-wide capex cycle they have had,” said Justin Post, an internet analyst at Bank of America. “They see it as a once in a lifetime opportunity.”
