[Tech Giants Burn Cash to Fatten Chipmakers, AI Investments Draining Cash Flow] According to monitoring by Beating, Amazon, Google, Meta, Microsoft, and Oracle are pouring massive amounts of cash into AI data centers. The money ultimately flows to chip companies like NVIDIA, Broadcom, and Micron. Bank of America describes this as a 'generational-level free cash flow transfer.' While chipmakers' cash flow continues to surge, tech giants are experiencing rapid declines. Amazon's free cash flow is expected to be negative $12 billion this year, though it still has over $100 billion in cash on hand. The risk lies in the possibility that tech giants may start scaling back AI investments. It would be reasonable for any single company to spend less, but if they collectively hit the brakes, the chip market and data center boom could cool off quickly. [Original Link]