Several US tech giants have sharply increased AI-related capital spending, with Alphabet forecasting capex of up to $205 billion and reporting negative free cash flow in the second quarter for the first time. Combined AI-linked capital outlays by Google, Microsoft, Meta and Amazon are expected to reach $724 billion this year. Investors are increasingly wary that heavy spending, negative cash flow and rising debt could prompt a repricing of tech valuations. Apple has bucked the trend with a more asset-light AI approach and a rising share price, though it has also raised prices on some products amid an AI-related memory-chip shortage.