The artificial intelligence industry is heading toward a major inflection point: according to estimates, the capital expenditures of the five major hyperscalers (Oracle, Microsoft, Amazon, Meta, and Alphabet) will exceed their combined operating cash flows for the first time in 2026. Wall Street analysts anticipate a significant slowdown in AI investments starting in 2027, due to supply constraints (chips, electrical equipment, power grid capacity) and higher borrowing costs. Despite this expected slowdown, major tech companies continue to expect exceptionally high returns from AI.
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