None
EN
As AI spend continues to soar, when will investors start to be rewarded?
['Sam Shaw', 'Senior Writer', 'Layer Van-Ds .Vds-Author Font-Size Var --Text-Base', 'Font-Size Var --Vds-Author-Font-Size', 'Var --Text-Base', 'Line-Height Var --Text-Base--Line-Height', 'Line-Height Var --Vds-Author-Line-Height', 'Var --Text-Base--Line-Height', 'Letter-Spacing Var --Tracking-Normal', 'Letter-Spacing Var --Vds-Author-Letter-Spacing']
Latest from MoneyWeek
Goldman Sachs has estimated that artificial intelligence (AI) capex is around $765 billion currently but is expected to grow to around $1.2 trillion next year.
Free cash flow, or lack of it, was a central theme from all these results – specifically, the impact from the level of capex.
Alphabet reported its first ever negative cash flow, while Meta posted a 91% year-on-year drop in free cash flow.
Amazon also reported a negative free cash flow of $7.6 billion.
“Would the hyperscalers cross the Rubicon into negative free cash flow, or would they cut AI spend?