{
  "title": "AI Infrastructure Capital Intensity: Capex vs. Operating Cash Flow",
  "path": "/research/ai-infrastructure-capital-intensity",
  "publishedAt": "2026-09-25",
  "updatedAt": null,
  "dataAsOf": "2026-08-31",
  "version": "1.0",
  "aggregate": {
    "latestOperatingCashFlowUsd": 692291000000,
    "latestCashCapexUsd": 566366000000,
    "latestFreeCashFlowUsd": 125925000000,
    "latestCashCapexToOperatingCashFlowPct": 81.81,
    "priorOperatingCashFlowUsd": 514127000000,
    "priorCashCapexUsd": 312564000000,
    "priorFreeCashFlowUsd": 201563000000,
    "priorCashCapexToOperatingCashFlowPct": 60.8,
    "cashCapexGrowthPct": 81.2,
    "operatingCashFlowGrowthPct": 34.65,
    "cashCapexToOperatingCashFlowChangePctPoints": 21.01
  },
  "companies": [
    {
      "companyId": "microsoft",
      "name": "Microsoft",
      "ticker": "MSFT",
      "latestPeriodEnd": "2026-06-30",
      "priorPeriodEnd": "2025-06-30",
      "latestOperatingCashFlowUsd": 182935000000,
      "latestCashCapexUsd": 115948000000,
      "latestFreeCashFlowUsd": 66987000000,
      "latestCashCapexToOperatingCashFlowPct": 63.38,
      "priorOperatingCashFlowUsd": 136162000000,
      "priorCashCapexUsd": 64551000000,
      "priorFreeCashFlowUsd": 71611000000,
      "priorCashCapexToOperatingCashFlowPct": 47.41,
      "cashCapexGrowthPct": 79.62,
      "operatingCashFlowGrowthPct": 34.35,
      "cashCapexToOperatingCashFlowChangePctPoints": 15.97,
      "latestCashCapexSharePct": 20.47,
      "latestOperatingCashFlowSharePct": 26.42,
      "cashCapexConcept": "PaymentsToAcquirePropertyPlantAndEquipment",
      "cashCapexExceedsOperatingCashFlow": false,
      "freeCashFlowNegative": false
    },
    {
      "companyId": "alphabet",
      "name": "Alphabet",
      "ticker": "GOOGL / GOOG",
      "latestPeriodEnd": "2026-06-30",
      "priorPeriodEnd": "2025-06-30",
      "latestOperatingCashFlowUsd": 185675000000,
      "latestCashCapexUsd": 132402000000,
      "latestFreeCashFlowUsd": 53273000000,
      "latestCashCapexToOperatingCashFlowPct": 71.31,
      "priorOperatingCashFlowUsd": 133708000000,
      "priorCashCapexUsd": 66980000000,
      "priorFreeCashFlowUsd": 66728000000,
      "priorCashCapexToOperatingCashFlowPct": 50.09,
      "cashCapexGrowthPct": 97.67,
      "operatingCashFlowGrowthPct": 38.87,
      "cashCapexToOperatingCashFlowChangePctPoints": 21.22,
      "latestCashCapexSharePct": 23.38,
      "latestOperatingCashFlowSharePct": 26.82,
      "cashCapexConcept": "PaymentsToAcquirePropertyPlantAndEquipment",
      "cashCapexExceedsOperatingCashFlow": false,
      "freeCashFlowNegative": false
    },
    {
      "companyId": "amazon",
      "name": "Amazon",
      "ticker": "AMZN",
      "latestPeriodEnd": "2026-06-30",
      "priorPeriodEnd": "2025-06-30",
      "latestOperatingCashFlowUsd": 161403000000,
      "latestCashCapexUsd": 173028000000,
      "latestFreeCashFlowUsd": -11625000000,
      "latestCashCapexToOperatingCashFlowPct": 107.2,
      "priorOperatingCashFlowUsd": 121137000000,
      "priorCashCapexUsd": 107656000000,
      "priorFreeCashFlowUsd": 13481000000,
      "priorCashCapexToOperatingCashFlowPct": 88.87,
      "cashCapexGrowthPct": 60.72,
      "operatingCashFlowGrowthPct": 33.24,
      "cashCapexToOperatingCashFlowChangePctPoints": 18.33,
      "latestCashCapexSharePct": 30.55,
      "latestOperatingCashFlowSharePct": 23.31,
      "cashCapexConcept": "PaymentsToAcquireProductiveAssets",
      "cashCapexExceedsOperatingCashFlow": true,
      "freeCashFlowNegative": true
    },
    {
      "companyId": "meta-platforms",
      "name": "Meta Platforms",
      "ticker": "META",
      "latestPeriodEnd": "2026-06-30",
      "priorPeriodEnd": "2025-06-30",
      "latestOperatingCashFlowUsd": 130301000000,
      "latestCashCapexUsd": 89325000000,
      "latestFreeCashFlowUsd": 40976000000,
      "latestCashCapexToOperatingCashFlowPct": 68.55,
      "priorOperatingCashFlowUsd": 102299000000,
      "priorCashCapexUsd": 52162000000,
      "priorFreeCashFlowUsd": 50137000000,
      "priorCashCapexToOperatingCashFlowPct": 50.99,
      "cashCapexGrowthPct": 71.25,
      "operatingCashFlowGrowthPct": 27.37,
      "cashCapexToOperatingCashFlowChangePctPoints": 17.56,
      "latestCashCapexSharePct": 15.77,
      "latestOperatingCashFlowSharePct": 18.82,
      "cashCapexConcept": "PaymentsToAcquirePropertyPlantAndEquipment",
      "cashCapexExceedsOperatingCashFlow": false,
      "freeCashFlowNegative": false
    },
    {
      "companyId": "oracle",
      "name": "Oracle",
      "ticker": "ORCL",
      "latestPeriodEnd": "2026-05-31",
      "priorPeriodEnd": "2025-05-31",
      "latestOperatingCashFlowUsd": 31977000000,
      "latestCashCapexUsd": 55663000000,
      "latestFreeCashFlowUsd": -23686000000,
      "latestCashCapexToOperatingCashFlowPct": 174.07,
      "priorOperatingCashFlowUsd": 20821000000,
      "priorCashCapexUsd": 21215000000,
      "priorFreeCashFlowUsd": -394000000,
      "priorCashCapexToOperatingCashFlowPct": 101.89,
      "cashCapexGrowthPct": 162.38,
      "operatingCashFlowGrowthPct": 53.58,
      "cashCapexToOperatingCashFlowChangePctPoints": 72.18,
      "latestCashCapexSharePct": 9.83,
      "latestOperatingCashFlowSharePct": 4.62,
      "cashCapexConcept": "PaymentsToAcquirePropertyPlantAndEquipment",
      "cashCapexExceedsOperatingCashFlow": true,
      "freeCashFlowNegative": true
    }
  ],
  "selectedFindings": {
    "companiesReviewed": 5,
    "companiesWithHigherCapitalIntensity": 5,
    "companiesWithCapexAboveOperatingCashFlow": 2,
    "latestCashCapexToOperatingCashFlowPct": 81.81,
    "priorCashCapexToOperatingCashFlowPct": 60.8,
    "cashCapexToOperatingCashFlowChangePctPoints": 21.01,
    "cashCapexGrowthPct": 81.2,
    "operatingCashFlowGrowthPct": 34.65,
    "highestCompanyCapitalIntensityTicker": "ORCL",
    "highestCompanyCapitalIntensityPct": 174.07
  },
  "sources": {
    "companyFactsUrl": "https://data.sec.gov/api/xbrl/companyfacts/",
    "companyFilings": [
      {
        "companyId": "microsoft",
        "publisher": "Microsoft",
        "url": "https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm",
        "observation": "Microsoft's fiscal 2026 Form 10-K describes substantial and increasing capital expenditures for cloud and AI infrastructure, including datacenters, components, and energy."
      },
      {
        "companyId": "alphabet",
        "publisher": "Alphabet",
        "url": "https://www.sec.gov/Archives/edgar/data/1652044/000165204426000071/goog-20260630.htm",
        "observation": "Alphabet's second-quarter 2026 Form 10-Q states that capital raised in June may be used for capital expenditures to scale AI infrastructure and global compute capacity."
      },
      {
        "companyId": "amazon",
        "publisher": "Amazon",
        "url": "https://www.sec.gov/Archives/edgar/data/1018724/000101872426000026/amzn-20260630.htm",
        "observation": "Amazon's second-quarter 2026 Form 10-Q says cash capital expenditures primarily reflect technology infrastructure, with the majority supporting AWS growth, and that spending includes AI and machine-learning initiatives."
      },
      {
        "companyId": "meta-platforms",
        "publisher": "Meta Platforms",
        "url": "https://www.sec.gov/Archives/edgar/data/1326801/000162828026050705/meta-20260630.htm",
        "observation": "Meta's second-quarter 2026 Form 10-Q says its anticipated 2026 capital expenditures support AI efforts as well as the core business."
      },
      {
        "companyId": "oracle",
        "publisher": "Oracle",
        "url": "https://www.sec.gov/Archives/edgar/data/1341439/000119312526277521/orcl-20260531.htm",
        "observation": "Oracle's fiscal 2026 Form 10-K says cash capital expenditures rose primarily because of data-center expansion and are expected to continue increasing."
      }
    ]
  },
  "methodology": {
    "capitalIntensityDefinition": "canonical cash capex divided by operating cash flow",
    "freeCashFlowDefinition": "operating cash flow minus canonical cash capex",
    "latestPeriodRule": "For each company, use the latest normalized TTM period whose underlying operating-cash-flow and capex quarter facts were publicly filed by the filing cutoff.",
    "priorPeriodRule": "Use the latest earlier eligible TTM period ending 330 to 400 days before the selected latest TTM period.",
    "crossCompanyBoundary": "Fiscal calendars and TTM period ends may differ by issuer. Aggregate cohort values are descriptive sums across each issuer's selected latest comparable TTM period, not one synchronized accounting quarter.",
    "aiAttributionBoundary": "The calculated capex metric is total-company cash capex using the checked-in canonical SEC concept vocabulary. Selection evidence establishes that AI, cloud, compute, or data-center infrastructure is a material current investment driver, but the measurement does not classify every capex dollar as AI spending.",
    "accountingConceptBoundary": "Amazon uses the reviewed U.S.-GAAP productive-assets purchase concept for cash capex. Microsoft, Alphabet, Meta Platforms, and Oracle use payments to acquire property, plant, and equipment."
  }
}