# Big Tech AI spend hits $165 bn as enterprises seek value

2026-08-13T01:51:40+00:00 | Technology | Indian Opinion Desk

Corroboration: 2 independent outlets

Big Tech's combined AI capital expenditure reached $165 billion in Q2 2026, while free cash flow shrank to $7 billion from $60 billion in Q4 2025, Jefferies reports. The research firm expects free cash flow to turn negative at -$12 billion in Q3 2026. Meanwhile, the cost of processing AI tokens is falling roughly 10X every year, with DeepSeek's V4 Flash charging $0.14 per million input tokens and OpenAI's GPT-5.6 Luna at $0.20. But inc42 reports enterprises are now focusing on value over cost: teams must justify AI spending through budget requests and productivity gains. Indian firms are piloting cheaper open-weight models, cutting inference costs by 30-70% in some cases, though compliance and data governance remain barriers.

## Coverage

- inc42.com <https://inc42.com/features/enterprise-ai-spend-gets-a-reality-check/>
- businesstoday.in <https://www.businesstoday.in/technology/story/ai-booms-hidden-bill-big-techs-spending-hits-165-billion-as-free-cash-flow-shrinks-549283-2026-08-14?utm_source=rssfeed>

Tags: AI budgets, AI spending, cost optimisation, enterprise AI, open-weight models, token economics
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