The four largest AI spenders plan to pour more than $700 billion in capital expenditures in 2026, nearly double their previous spending. Alphabet sparked the anxiety spiral on July 22 by raising its 2026 capex guidance to $195-205 billion, causing its shares to drop roughly 6%. Amazon is targeting around $200 billion, Microsoft around $190 billion, and Meta $125-145 billion. Approximately 75% of that total is earmarked for AI infrastructure. Investors are concerned about whether these companies can maintain financial flexibility and generate sufficient free cash flow to fund these massive investments.
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