Google, Meta, Amazon and Microsoft lost a combined $900 billion in market value after quarterly results triggered concerns over the cost of their AI ambitions
The four tech giants spent $207 billion on AI-related capex in Q3, nearly double the $113 billion spent a year earlier
Heavy AI investments have pushed Google, Meta and Amazon into negative cash flow, forcing companies to explore debt and equity funding
Google Cloud revenue surged 103% to $30.71 billion, while Amazon Web Services grew 39% to $46 billion. AI demand remains strong, but investment costs are mounting
The four companies expect nearly $750 billion in AI-related capex for 2026. Such spending is testing even their ability to finance investments through internal accruals
Investors are shifting focus from AI's growth potential to the cost of capital and returns on investment. The sustainability of the AI boom is now under scrutiny