AI Capex to Exceed $770 Billion as Tech Free Cash Flow Turns Negative

Hyperscaler AI capital expenditure could exceed $770 billion in 2026, 23% above prior expectations. With operating cash flow no longer covering these buildouts, Wall Street projects roughly $300 billion in AI-related investment-grade bond supply — nearly six times 2022 spending levels. Alphabet's Q2 free cash flow burn of $5.9 billion and Tesla's negative $1.1 billion illustrate the gap firsthand.