--- title: Big Tech’s AI spending is catching up with its cash flow description: The four largest US tech companies are on track to spend nearly $700bn on AI infrastructure in 2025, with combined capex projected to overtake operating cash... canonical: https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Big Tech’s AI spending is catching up with its cash flow | daily.dev og:description: The four largest US tech companies are on track to spend nearly $700bn on AI infrastructure in 2025, with combined capex projected to overtake operating cash... og:url: https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw og:image: https://api.daily.dev/og/posts/LC6qUIWHW.png og:image:alt: Big Tech’s AI spending is catching up with its cash flow og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Big Tech’s AI spending is catching up with its cash flow **[The Next Web](https://daily.dev/sources/tnw)** · 4 min read · 0 upvotes · 0 comments ## Summary The four largest US tech companies are on track to spend nearly $700bn on AI infrastructure in 2025, with combined capex projected to overtake operating cash flow by Q3 2026. Amazon's free cash flow dropped to $1.2bn from $26bn year-over-year, while Oracle's capex reached 174% of operating cash flow with free cash flow turning negative. Hyperscaler capex is growing at ~70% annually versus ~23% for operating cash flow, forcing companies like Amazon, Alphabet, and Meta to tap bond markets for financing. Analysts warn that earnings growth may not justify the investment if capex continues depleting cash, with a 2-3 year window needed to show spending translates into revenue and margin improvements. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [Amazon and Google are winning the AI capex race — but what’s the prize?](https://daily.dev/posts/amazon-and-google-are-winning-the-ai-capex-race-but-what-s-the-prize--czuzcgbqg) · TechCrunch · 0 upvotes · 0 comments - [Amazon jumps as AWS growth soothes fears over its AI spending](https://daily.dev/posts/amazon-jumps-as-aws-growth-soothes-fears-over-its-ai-spending-isyim74gx) · The Next Web · 0 upvotes · 0 comments - [Alphabet capex to treble in two years amid datacenter boom](https://daily.dev/posts/alphabet-capex-to-treble-in-two-years-amid-datacenter-boom-e0neokzv6) · The Register · 0 upvotes · 0 comments --- Tags: [#ai](https://daily.dev/tags/ai), [#cloud](https://daily.dev/tags/cloud), [#big-tech](https://daily.dev/tags/big-tech) [View this post on daily.dev](https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Big Tech’s AI spending is catching up with its cash flow","url":"https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw"},"datePublished":"2026-07-22T08:40:58.842Z","dateModified":"2026-07-23T14:15:41.046Z","description":"The four largest US tech companies are on track to spend nearly $700bn on AI infrastructure in 2025, with combined capex projected to overtake operating cash...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/51d922e2d9f338312fd052338c8e72ef?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/51d922e2d9f338312fd052338c8e72ef?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/big-tech-s-ai-spending-is-catching-up-with-its-cash-flow-lc6quiwhw","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"ai,cloud,big-tech","timeRequired":"PT4M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"Big Tech’s AI spending is catching up with its cash flow"}]} ```