Source: TechCrunch
Meta, Amazon, and Microsoft are burning through billions on data centers and chips while posting negative free cash flow. They're defending capex spending to increasingly skeptical shareholders who want returns, not just scale. The gap between AI hype and actual revenue generation—with most AI products still generating minimal income—is becoming impossible for CFOs to rationalize, especially as interest rates stay elevated and debt servicing costs mount. The market is pricing in that $150B+ annual AI capex requires either breakthrough monetization or a reset in spending discipline.