Cracks are appearing in the big tech AI spending boom, with negative free cash flow and massive debt sparking investor concerns, leading to a 2.9% drop in the Nasdaq on Friday. Companies like Alphabet, Amazon, and Meta plan to invest over $740 billion in AI infrastructure this year, but investors are questioning the sustainability of these expenditures. Specifically, Alphabet reported a negative free cash flow of $9.1 billion in the third quarter, Amazon's negative free cash flow reached $42.4 billion over the past 12 months, and Meta recorded a negative free cash flow of $2.1 billion in the third quarter. These companies collectively raised $326 billion in debt through stock and bond issuances in 2026. As a result, the Nasdaq Composite fell by 2.9% on Friday, with chip stocks like NVIDIA, Broadcom, and Qualcomm also experiencing significant declines. Alphabet's stock price had previously plunged 12% on Thursday, wiping out $500 billion in market capitalization.