Capital markets fund AI's cash flow collapse
The case made was that major tech companies are raising unprecedented debt and equity not for growth, but to cover collapsing free cash flow caused by soaring AI infrastructure costs.
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The Callback
AI CapEx buildout precedes massive cash flow
28 weeks between these two statements.
The thesis presented is that Alphabet, Amazon, and Meta are now planning to spend more than 100% of their estimated 2026 operating cash flow on capital expenditures, a dramatic increase from historical norms.
The case made was that major tech companies are raising unprecedented debt and equity not for growth, but to cover collapsing free cash flow caused by soaring AI infrastructure costs.