US hyperscalers—including Microsoft, Alphabet, Amazon, Meta Platforms, and Oracle—are facing pressure on free cash flow due to massive capital expenditures for AI infrastructure, despite beginning to see returns, according to a Reuters analysis of LSEG consensus estimates. The analysis projects that by 2027, these companies will collectively spend more on capex than they generate in free cash flow. Operating cash flow is expected to increase by approximately $340 billion between 2025 and 2027, but capex is forecast to rise by around $534 billion, meaning for every dollar of additional cash flow, about $1.57 will be invested. Current-year consensus estimates for the five companies' capex rose from approximately $485 billion in January to about $730 billion in July, per LSEG data. Microsoft reported $35.8 billion in operating cash flow in its fiscal second quarter but recorded $37.5 billion in capital expenditures. Oracle's shares declined by 36% this year, with free cash flow turning negative; its capex as a percentage of operating cash flow increased from 47% in fiscal 2022 to 174% for fiscal 2026, with plans to raise $45 billion to $50 billion through debt and equity.