AI spending by Big Tech to slow in 2028 as cash flow pressures mount

[Aerial View Data Center] JasonDoiy Spending by major U.S. cloud computing companies on AI infrastructure is expected to keep rising through 2027 before slowing in 2028 as mounting cash flow pressures and concerns over credit ratings weigh on investment. The five largest U.S. cloud service providers are expected to spend about $1.2T in 2027 and $1.4T in 2028, representing annual increases of 43% and 16%, respectively, according to Jeff Pu of GF Securities. The estimates are lower than his previous forecasts of 53% and 20% growth. The revised outlook comes as companies including Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]), Alphabet (GOOGL [https://seekingalpha.com/symbol/GOOGL]), and Meta (META [https://seekingalpha.