In the first nine months of 2026, the top five tech giants—Microsoft, Alphabet, Amazon, Meta, and Oracle—spent $556.9 billion on AI infrastructure, exceeding their combined operating cash flow of $542.9 billion. This marks a shift from previous years, pushing free cash flow into a $14 billion deficit and forcing companies to reduce buybacks drastically, impacting shareholder value. Alphabet has already crossed into negative free cash flow territory, funding its AI expansion through share sales and debt, while Microsoft still covers its spending from operations but with a shrinking buffer. The ongoing massive AI investments raise concerns about sustainability, with future earnings reports expected to clarify if these companies can maintain growth without further shareholder dilution.
Microsoft trades at USD 521.91 on Pluang, down 1.55% as of Oct 31, 2026 22:21 WIB. Google shares are priced at USD 278.22, down 1.45%, reflecting cautious sentiment. Oracle faces a larger drop, down 6.36% at USD 130.68, amid concerns over heavy AI spending and its impact on cash flow and shareholder returns.
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