Part 3/9:
The conversation then shifts to the financial strategies that major corporations are adopting in response to these anticipated changes. The past decade has featured remarkable free cash flow from innovative companies, notably the 'MAG 7' (Meta, Apple, Google, Amazon, Microsoft, Netflix, and Tesla). Traditionally, substantial free cash flows raised questions about reinvestment strategies. Yet, a notable trend is emerging: increasingly, 100% of incremental free cash flow is being allocated towards the development of new technologies, notably AI.