Tech Giants' AI Spending May Reach $700B This Year, But Raises Concerns Over Cash Flow

Analysts at Barclays predict a significant drop in Meta's free cash flow, with a 90% decline expected this year, due to the company's high capital expenditure of $135 billion. They also forecast negative cash flow for the next two years. This is attributed to Meta's focus on investing in AI infrastructure. Other tech companies, such as Microsoft, are also expected to see a decline in free cash flow, although not as severe as Meta's.