US Tech Giants Spend $313 Billion on AI Infrastructure

Five major American technology companies have aggressively increased capital expenditure to develop data centers equipped with artificial intelligence chips. Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., Microsoft Corporation, and Oracle Corporation spent a combined $313 billion in the 12 months ending June, a figure that more than doubles the $146 billion spent three years earlier.

This massive investment in AI infrastructure has begun to impact the financial liquidity of these firms. Amazon.com Inc. saw its free cash flow reduced by half over the past year due to these soaring costs. To sustain its operations and infrastructure growth, Meta Platforms Inc. borrowed $30 billion through the bond market in October.