CLOUD · T07
Is AI revenue arriving fast enough for the biggest spenders to pay for their data centers out of their own cash?
Microsoft, Alphabet, Amazon and Meta spent 96 cents on property and equipment for each dollar of operating cash in the second quarter of 2026, up from 65 cents across 2025, by DeepStack's reading of SEC filings. Microsoft still pays from its own cash. Amazon spent $1.38 per dollar in the first half.
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The cash still covers it
Cloud sales grow fast enough, and contracts arrive early enough, that the spenders' own cash carries the build and services the debt.
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The bill has moved to debt
Capital spending now exceeds the cash the spenders earn; bonds, leases and commitments kept off the balance sheet fill the gap.
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The questions
Settles Oct 28open
Will Alphabet's equipment spending hit 80% or more of its operating cash flow in Q3 2026?
Settles Nov 10open
Will Microsoft, Alphabet, Amazon and Meta together spend more on equipment than they bring in from operations in Q3 2026?
Settles Feb 12open
Will Alphabet, Amazon and Meta guide their 2027 capital spending to at least 25% more than 2026?
Settles Feb 16open
Will the four biggest tech giants together spend more on equipment in 2026 than the cash their operations bring in?