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Google's cash flow turns negative due to huge AI spending

23 July 2026 · in 80 words

Google's cash flow turns negative due to huge AI spending

Google's parent company, Alphabet, reported negative free cash flow of $5.9 billion (£4.3 billion) in recent months, marking its first occurrence in at least ten years. Massive investments in artificial intelligence infrastructure are responsible, with spending expected to reach up to $205 billion this year. Despite a 23% rise in quarterly revenue to $119.8 billion, the company's stock fell 4% after the news.

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