AI’s next phase may require flexible private capital to fund growing compute, power, land and other digital infrastructure needs.
authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
Aggregate AI capex estimates ($B)
Stacked bar chart showing AI capex rising from about $760B in 2026 to $1.6T in 2031, led by compute and data center spending.
Source: Goldman Sachs. Tracking Trillions: The assumptions shaping the scale of the AI build-out.
  • NVIDIA’s recently announced $500 billion financing partnership with Wall Street firms underscores a growing reality: The next phase of AI infrastructure buildout will likely require significant amounts of external capital.
  • AI workloads, cloud computing and other data-intensive applications are driving demand for data centers, power infrastructure, fiber networks and related assets.
  • To date, much of the AI buildout has been funded internally by hyperscalers such as Amazon, Microsoft, Alphabet, Meta and Oracle.
  • However, hyperscaler free cash flow is likely to approach zero in aggregate by the end of 2026, underscored by Alphabet’s recent quarterly announcement that its free cash flow had turned negative for the first time since the company went public in 2004.
  • This means the next leg of capital spending growth—from $414 billion in 2025 to $1 trillion in 2027 and beyond—will be mostly externally financed.
  • Investors with cross-disciplinary expertise and flexible capital may be best-positioned to participate in the next phase of AI-driven infrastructure growth.

Today’s chart of the week highlights a key trend impacting private markets today. Explore this insight and more in our 2026 Midyear Private Markets Outlook: Between the tackles: Picking running lanes in an uneven market.

contributing authors
Christopher Bole
Christopher Bole
Vice President, Financial Writer
footnotes + disclosures

The chart of the week and any accompanying data is for informational purposes only and shall not be considered an investment recommendation or promotion of Future Standard or any Future Standard fund. The chart of the week is subject to change at any time based on market or other conditions, and Future Standard and FS Investment Solutions, LLC disclaim any responsibility to update such market commentary. The chart of the week should not be relied on as investment advice, and because investment decisions for the Future Standard funds are based on numerous factors, may not be relied on as an indication of the investment intent of any Future Standard fund. None of Future Standard, its funds, FS Investment Solutions, LLC or their respective affiliates can be held responsible for any direct or incidental loss incurred as a result of any reliance on the chart of the week or other opinions expressed therein. Any discussion of past performance should not be used as an indicator of future results.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. Future Standard is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of Future Standard. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. Future Standard does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. Future Standard cannot guarantee that the information herein is accurate, complete, or timely. Future Standard makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither Future Standard nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.