AI Spending Surge Pushes Tech Free Cash Flow Negative

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