AI spending strains cash flow at Amazon, Alphabet, Meta, Microsoft and Oracle

Amazon, Alphabet, Meta, Microsoft and Oracle are facing a widening AI investment squeeze as profits rise but free cash flow falls after capital spending, The Economist reported on May 14, 2026. The five cloud and computing companies are expected to spend $800 billion in 2026 on computing equipment and data centers, equal to about 40% of revenue, according to the report. The Economist said Amazon, Meta and Microsoft may post at least one quarter of negative cash flow in 2026, while Oracle is already under cash-flow pressure. The companies have raised $260 billion in bonds since early 2025, about a quarter of U.S. listed nonfinancial corporate issuance. Future data-center lease commitments have reached $820 billion, with another $680 billion committed for chips and equipment. Chip suppliers including Broadcom, Micron and Nvidia have benefited from the spending, while only Alphabet has outperformed the Nasdaq among the five, the report said.