Amazon, Meta among ‘Hyper 5’ facing AI cash-flow test

A new research report by S&P Global Market Intelligence reveals that the race to develop artificial intelligence infrastructure has pushed corporate capital expenditures to historically unprecedented levels. The tech giants dubbed the 'Hyper 5'—Amazon, Alphabet, Microsoft, Meta, and Oracle—have invested a combined $1.1 trillion in capex over the last five years. Visible Alpha projections indicate these companies could spend an additional $5.3 trillion through 2030, raising questions regarding long-term financial sustainability. This aggressive spending is placing intense pressure on free cash flow and corporate liquidity cushions. Amazon reported trailing 12-month free cash flow plunging to negative $7.6 billion from positive $18.2 billion as equipment spending surged to $66.1 billion. Simultaneously, Meta saw second-quarter free cash flow drop 91% to $784 million as capital expenditures jumped 83% to $31.1 billion. Analysts emphasize that although tech giants remain profitable, shrinking cash reserves raise risks if companies shift toward debt-funded capex before revenue returns materialize.