Big Tech AI Capex Surge Pushes Q3 Free Cash Flow into Negative Territory

Accelerating artificial intelligence infrastructure spending has pushed combined third-quarter free cash flow for major tech hyperscalers to negative $26.4 billion. Combined capital expenditures across Amazon, Alphabet, Meta Platforms, and Microsoft climbed to a record $201.9 billion in Q3 2026, up $36.9 billion from the prior quarter. Meta recorded $34.91 billion in capital spending, generating negative $2.12 billion in free cash flow, while Alphabet posted negative $9.06 billion and Amazon reported negative $33.5 billion. Microsoft was the sole hyperscaler with positive free cash flow at $18.6 billion. To support continued expansion, Meta plans to issue a new nonvoting share class.