AI spending among the world’s biggest tech companies is projected to reach $765 billion this year and nearly $1.2 trillion by 2027, according to Goldman Sachs. Amazon raised its capex forecast to $220 billion and reported negative free cash flow of $7.6 billion over the trailing 12 months, while Meta disclosed a 91% drop in cash generation and Alphabet’s cash flow turned negative for the first time on record. The memory crunch, with memory pricing described as « insane » by Elon Musk, is driving costs higher across the sector, leading to mixed investor reactions and growing skepticism about the return on these massive AI investments.
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