#Ai_sector #ai Tech AI spending may approach $700 billion this year

Alphabet, Microsof, Meta and Amazon are expected to spend nearly $700 billion combined this year to fuel their AI build-outs. The four hyperscalers are now projected to increase capital expenditures by more than 60% from the historic levels reached in 2025, as they load up on high-priced chips, build new mammoth facilities and buy the networking technology to connect it all.

Getting to those kinds of numbers is going to require sacrifice in the form of free cash flow. Last year, the four biggest U.S. internet companies generated a combined $200 billion in free cash flow, down from $237 billion in 2024