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00:02Microsoft, Alphabet, and Amazon have spent more than $600 billion on AI since 2023,
00:08a surge that is weakening cash balances, reducing free cash flow, and reshaping their business
00:13models. Their cumulative net income is set to surpass $750 billion between 2023 and 2025,
00:21but the cash drain is growing as assets expand with AI infrastructure, according to the Wall
00:26Street Journal. Microsoft's cash and short-term investments fell to about 16% of assets,
00:32down from around 43% in 2020, while Alphabet and Amazon also reported smaller relative cash
00:38positions. Meta doubled its debt with a $30 billion bond in October, and Oracle sold $18 billion in
00:44bonds after its cloud computing deal with OpenAI. Investors reacted as Amazon stock fell about 5%
00:51last week, and Google fell about 2.5%, reflecting concerns that heavy AI spending is altering how
00:57these companies generate returns. For all things money, visit Benzinga.com.
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