[JPMorgan Chase: A Significant Divergence Between AI Giants' Profits and Free Cash Flow] DeepTech TechFlow reports that on August 11, JPMorgan Chase pointed out a significant divergence between the profits and free cash flow of AI giants. Represented by large-scale cloud service providers such as Google, Amazon, Microsoft, and Meta, their net profits over the past 12 months have risen to approximately $599 billion, but free cash flow after deducting capital expenditures is only about $169 billion, widening the gap to $430 billion. At the end of 2023, both net profits and free cash flow were still around $240 billion. However, the reason is not a weakening demand for AI but rather faster growth in capital expenditures. JPMorgan Chase predicts that AI-related capital expenditures will reach approximately $900 billion by 2026 and further exceed $1.2 trillion by 2027. A large amount of newly generated cash is being reinvested into data centers, servers, GPUs, and network infrastructure, causing profit growth to temporarily fail to translate into discretionary free cash flow. It is worth noting, however, that revenues and orders for AWS, Azure, and Google Cloud are still growing rapidly, indicating that AI monetization capabilities are improving. JPMorgan Chase expects that, except for Microsoft, most of the large-scale cloud service providers it covers will continue to face pressure on free cash flow in 2026–2027. (Jin10)