Amazon, Google, Meta, Microsoft, and Oracle are pouring large amounts of cash into AI data centers. The money ultimately flows to chip companies like Nvidia, Broadcom, and Micron. Bank of America says this is a “generational-level transfer of free cash flow.”

Cash flows from chip companies keep rising, while technology giants are quickly declining. Amazon’s free cash flow is expected to be negative $12 billion this year, but it still has more than $100 billion in cash on hand.

The risk is that the tech giants may start scaling back AI investment. It’s reasonable for any one of them to spend less, but if they collectively slam the brakes, the chip market and the data-center boom could cool down quickly. #GUSD年化升至3.8%