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Tech AI buildout stretches cash while memory and other costs rise
CNBC Markets reports that negative cash flow hit Amazon, Alphabet and Tesla in the latest quarter, while Meta saw cash generation drop 91.0%.
Tech companies’ AI expansion is coming with a widening cash and cost squeeze, according to CNBC Markets.
In the latest quarter, Amazon, Alphabet and Tesla all reported negative cash flow, CNBC Markets said, underscoring how much working capital is being consumed as AI spending ramps.
CNBC Markets also pointed to Meta’s results, noting that the company’s cash generation fell 91.0%, highlighting how quickly AI-related investment is weighing on broader liquidity.