6 Hyperscalers Driving the AI Revolution Are Projected to Spend $1.3 Trillion on Capex in 2027. Only 1 Is Forecast to Have Positive Free Cash Flow.
Spending on artificial intelligence infrastructure is expected to continue growing rapidly next year.
Overview
Hyperscalers driving the artificial intelligence (AI) revolution have been spending hundreds of billions annually since 2024 to build AI infrastructure.
This includes data centers equipped with various chips, memory, servers, and more to continue powering the insatiable demand for AI, whether from consumers using large language models (LLMs) or companies building out AI solutions or integrating AI into their existing businesses.
Details
Next year, that number is expected to rise to $1.3 trillion from just six of the major hyperscalers, according to a new report from S&P Global, which provides grades on the debt issued by most major companies. Only one of these companies -- Microsoft (NASDAQ: MSFT) -- is projected to have positive free cash flow (FCF) next year.
Source
Originally published at www.fool.com.