JPMorgan: Hyperscalers AI Capex Hits 93% of Cash Flow

JPMorgan Asset Management data shows major hyperscalers directing 93% of operating cash flow into capex during 2026, up sharply from 33% in 2023. This surge creates a prisoner's dilemma where each player fears losing ground in compute capacity, models and cloud infrastructure, driving defensive AI spending that may outpace immediate returns. The resulting capital allocation pressure spills into liquidity, credit markets, energy demand, commodities and risk assets including Bitcoin, amplifying AI industry impact on broader crypto market dynamics and forcing investors to scrutinize sustainable revenue conversion over raw spend.