America's four largest tech companies are pouring $725bn into AI infrastructure, pushing their combined free cash flow to the lowest level in a decade. The hyperscalers—Amazon, Alphabet, Microsoft and Meta—are expected to generate roughly $4bn in free cash flow during the third quarter, down from an average of $45bn per quarter since the pandemic.

Their full-year free cash flow will hit the lowest point since 2014, when revenues were about a seventh of current levels. Amazon is burning through cash faster than it generates this year, while Meta will do the same in the second half. Alphabet issued $31bn in new debt during the quarter and another $17bn in euro and Canadian dollar bonds, marking the first quarter since 2015 with no stock buybacks.

Meta has issued $55bn of debt over six months while pausing repurchases—the longest stretch since 2017. Amazon expects to burn roughly $10bn this year and has committed $200bn for 2026, the most among its peers. Microsoft flagged that price inflation alone will add $25bn to capital expenditure needs. The spending mirrors capital-intensive industries like telecoms, where over-investment risks overcapacity and weak returns.