Big Tech Cash Dries Up Amid AI Investment: Meta, SpaceX, and OpenAI Compete for Funding

Major U.S. big tech and AI companies are embarking on large-scale fundraising to secure infrastructure such as data centers and AI chips. While massive investments are putting a strain on cash flow and profitability, it is difficult to halt these investments without falling behind in the competition. Meta Platforms is continuing its investment in expanding AI data centers and computing infrastructure. Capital expenditures in the third quarter reached $34.9 billion, and free cash flow turned to a deficit of $2.12 billion. Meta announced a plan to continue large-scale investments by raising the lower end of its capital expenditure outlook for this year from $130 billion to $135 billion.