AI Investments Impact Free Cash Flow for Microsoft and Oracle Differently
The AI boom is increasing capital expenditures (capex) among major tech firms, including Microsoft and Oracle, with capex projected to outpace free cash flow by 2027. While both companies are investing heavily in cloud infrastructure, their financial situations differ: Microsoft remains profitable despite rising costs, while Oracle reported negative free cash flow for fiscal 2026.
Topics: AI capex free cash flow Microsoft Oracle