Hyperscalers' AI Infrastructure Spending to Reach $1.3 Trillion by 2027

The six largest hyperscalers, including Alphabet and Amazon, are projected to spend over $1.3 trillion on AI infrastructure by 2027.

This massive investment is expected to lead to negative free operating cash flow for these companies in 2026 and 2027, with a potential recovery not until 2029.

To fund this expansion, hyperscalers are increasingly relying on debt, leases, and complex financing structures, raising concerns about credit quality.