AI data center builders shift to debt funding

The author argues that the AI infrastructure buildout has shifted from being funded by free cash flow to relying heavily on debt and external capital. Data compiled from SEC filings shows that the five biggest data center builders are converging on zero free cash flow as cash capital expenditures outpace operating cash flows. Meanwhile, signs of price sensitivity for AI tokens and slowing revenue growth at leading companies are beginning to strain the market. Open article →