Big Tech's AI Spending Outpaces Its Earnings

Big Tech companies could spend over $770 billion on AI in 2026, 23% above earlier forecasts. Their earnings no longer cover the cost, so Wall Street expects about $300 billion in new borrowing — nearly six times 2022 levels. Alphabet burned through $5.9 billion and Tesla $1.1 billion in the second quarter, showing the shortfall firsthand.