Alphabet, Meta, Amazon Face $801B AI Spending, Negative Free Cash Flow in 2027-2028: Citigroup

According to Citigroup's latest forecast, Alphabet, Meta, and Amazon will collectively spend $801 billion on artificial intelligence infrastructure in 2027, with combined capital expenditures expected to push all three companies into negative free cash flow in 2027 and 2028.

Citigroup raised 2027 capital expenditure estimates for Alphabet by 21% to $308 billion, Meta by 22% to $205 billion, and Amazon by 12% to $288 billion. Meta's elevated spending targets reflect the company's goal of achieving 14 gigawatts of computing capacity.