How the AI boom is revolutionizing US stock markets, as hyperscalers cut buybacks and boost capex, including Alphabet's planned ~$85B in equity offerings for AI

The AI boom is fundamentally rewiring how Big Tech handles its money. Hyperscalers are cutting stock buybacks and ramping capital expenditure to feed their insatiable AI ambitions. The shift is significant enough to reshape US equity markets.

Alphabet is leading the charge with roughly $85 billion in planned equity offerings earmarked for AI investment. That's a staggering number — and a clear signal that even the richest companies on Earth can't self-fund the AI race from cash flow alone.

Big Tech no longer just prints money. It needs it. The era of returning excess capital to shareholders is giving way to a capex arms race.

The big question hanging over all of this: what happens when confidence in AI returns wobbles? These companies are betting enormous sums on a future that hasn't fully materialized yet. Markets will be watching.