TechCrunch sees pressure emerging in the AI spending boom

According to TechCrunch, Alphabet, Amazon, Meta and Microsoft plan to spend more than $740 billion on capital expenditures this year, much of it tied to AI data centers and chips. Investor reaction has worsened as debt rises, free cash flow turns negative and returns remain uncertain: the Nasdaq fell 2.9% on one Friday, while shares of Nvidia, Broadcom and Qualcomm declined.

Alphabet reported negative free cash flow of $9.1 billion in the third quarter and raised capital expenditures to $51.4 billion; Amazon reported negative free cash flow of $42.4 billion over the past 12 months, and Meta reported $2.1 billion in negative free cash flow in the quarter. Microsoft was an exception, with $18.6 billion in positive free cash flow. According to S&P Global Market Intelligence, the five companies collectively raised $326 billion in debt in 2026. The environment could also complicate Anthropic’s IPO, as the company’s growth depends on securing substantial computing capacity.