Tech Giants Burn $828 Billion on AI Infrastructure

Five tech giants are plowing eight hundred twenty-eight billion dollars into artificial intelligence infrastructure this year alone. That spending beats the annual defense budget of the entire United States. Amazon, Alphabet, Microsoft, Meta, and SpaceX are driving the bill higher. Wall Street panicked on Friday as the Nasdaq suffered its worst drop since June. Nasdaq one hundred companies lost over one trillion dollars in market value in a single session. Four of those five tech heavyheads posted negative free cash flow last quarter. Microsoft was the sole exception to that cash crunch. Even so, Microsoft just launched a twenty-five billion dollar bond sale. Meta plans to raise up to ninety-five billion dollars by issuing new shares. Oracle does not expect to see positive free cash flow again until twenty twenty-eight. Cloud revenue is climbing fast for Google and Microsoft. Yet economists warn that a tech downturn could drag down the entire broader market.