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The AI Arms Race: Running On Fumes And Borrowed Money

By Seeking Alpha May 07, 2026 Bearish
The AI Arms Race: Running On Fumes And Borrowed Money
Big Tech—Amazon, Alphabet, Meta, Microsoft—faces unprecedented liquidity and leverage pressures as AI-driven capex now rivals or exceeds operating cash flows. Rapid debt accumulation and creative, opaque financing structures are reshaping risk profiles, raising concerns about sustainability and potential systemic impacts.
Big Tech—Amazon, Alphabet, Meta, Microsoft—faces unprecedented liquidity and leverage pressures as AI-driven capex now rivals or exceeds operating cash flows. Rapid debt accumulation and creative, opaque financing structures are reshaping risk profiles, raising concerns about sustainability and potential systemic impacts.