Members Only - FT Unhedged - Big tech's AI spending spree: Why markets are freaking out about Meta

Big tech companies are spending staggering amounts on the AI arms race, with forecasts for 11 companies hitting $620 billion next year. For a long time, markets were comfortable with this, as companies paid from their own cash reserves. But that's changing. Meta, the parent company of Facebook and Instagram, recently saw $200 billion wiped from its value after announcing it would spend $72 billion on AI this year and issue a new $30 billion bond.

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