Tech Giants Cash-Rich, Yet AI Infrastructure Limits
Update: 2025-12-19
Description
Tech Giants Flush with Cash, but Infrastructure Challenges Persist - Despite having enough cash to take on more debt, major tech companies like Meta, Alphabet, Microsoft, Amazon, and Oracle are facing significant challenges in meeting the demand for AI due to physical limitations. These companies are expected to generate a combined operating cash flow of $577 billion this year, but their total debt is projected to increase to $433 billion. However, Oracle stands out as it is expected to have negative free cash flow until 2029, limiting its ability to take on more debt. The companies are also facing challenges in building enough data centers and infrastructure due to the time-consuming process of manufacturing and delivering specialized equipment.
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