Big Tech AI spending to hit $765B as cash flows turn negative

The world’s largest technology companies are pouring unprecedented sums into artificial intelligence, pushing combined capital spending to a projected $765 billion in 2026, according to Goldman Sachs. The figure is expected to climb to nearly $1.2 trillion by 2027.

Amazon said on July 31, 2026, that it now expects to spend $220 billion on capital projects this year, the most among the four biggest hyperscalers, and reported negative free cash flow of $7.6 billion over the trailing 12 months. CEO Andy Jassy attributed the raised forecast to the “inflated price” of memory chips.

Meta, on July 30, disclosed that its cash generation plunged 91% from a year earlier.

In the week of July 20, Alphabet reported its first-ever negative free cash flow.

Alphabet finance chief Anat Ashkenazi told analysts that free cash flow will remain under pressure as the company seizes on the “AI opportunity.”

A widening memory-chip shortage, driven by surging demand for AI processors, is pushing costs higher across the industry.