U.S. hyperscalers are starting to show returns on their artificial intelligence investments, but the rising cost of the buildout is taking a bite out of their free cash flow, and investors are noticing.
At their current trajectory, the so-called "hyperscalers" -- Microsoft, Alphabet, Amazon, Meta Platforms and Oracle -- are expected to spend more combined on capital expenditures than they generate in free cash flow by 2027, according to a Reuters analysis of LSEG consensus estimates.
