Since the depreciation rate of the chips has been lowered just remember that in 3 years from now, your Gemini Flash will be Gemini Sloth because these functionally inferior chips will still have 2 more years of fiscal life in them.

optimism

You mean a cash cow? 'Money printing machine' sounds way too bankster! AHAHAH

BlokchainB

grayruby

AI is expensive, but every major player seems convinced it's worth the investment.

bonkk

The AI race is getting so expensive that even Google's balance sheet is feeling it.

PepeFan

Negative cash flow is a bold move for a company of Google's size. They're clearly all in.

Etson

It'll be interesting to see which of these AI investments actually generate lasting returns.

MonkeyDose

Seems kind of dumb that CapEx is considered negative to cash flow since it can be turned off and only be reflected in cash-on-hand/book value

justin_shocknet

Feels like an arms race where nobody wants to be the first to slow down.

BlockSmith

Google continues to report big quarterly revenue, but its AI spending has skyrocketed.

Google has reported its financial results for the second quarter of 2026 (

), and as usual, the search giant raked in an unfathomable amount of money. Google saw total revenue of $119.8 billion, beating analyst expectations by a comfortable margin. Despite that, the company’s stock has taken a hit. Along with all that revenue, Google has announced a further increase in its AI-fueled capital expenditures (or capex). The company is actually spending so much on AI infrastructure that it has negative cash flow for the first time.

Search was the largest chunk of Google’s income, accounting for $63.3 billion. Google Cloud pulled in $24.8 billion, a significant 23.8 percent increase from the first quarter. This shows there is massive demand for Google’s AI services. Google also earned $12.9 billion from its subscriptions, platforms, and devices portfolio, as well as $11.1 billion from YouTube ads. The company managed to goose that last one by more than 12 percent since last quarter as it made YouTube ads 

A significant chunk of Google’s revenue comes from investments. When you subtract those non-cash earnings, Google’s operating cash flow for Q2 2026 was about $39.1 billion. That’s not the most the company has ever seen, but it’s a healthy 40 percent increase from Q2 2025. The problem is that Google’s spending has also gone up—a lot.

Stacker_Stocks

> **Google continues to report big quarterly revenue, but its AI spending has skyrocketed.**
>
> Google has reported its financial results for the second quarter of 2026 ([PDF](https://s206.q4cdn.com/479360582/files/doc_financials/2026/q2/2026q2-alphabet-earnings-release.pdf)), and as usual, the search giant raked in an unfathomable amount of money. Google saw total revenue of $119.8 billion, beating analyst expectations by a comfortable margin. Despite that, the company’s stock has taken a hit. Along with all that revenue, Google has announced a further increase in its AI-fueled capital expenditures (or capex). The company is actually spending so much on AI infrastructure that it has negative cash flow for the first time.
>
> Search was the largest chunk of Google’s income, accounting for $63.3 billion. Google Cloud pulled in $24.8 billion, a significant 23.8 percent increase from the first quarter. This shows there is massive demand for Google’s AI services. Google also earned $12.9 billion from its subscriptions, platforms, and devices portfolio, as well as $11.1 billion from YouTube ads. The company managed to goose that last one by more than 12 percent since last quarter as it made YouTube ads [even longer](https://arstechnica.com/gadgets/2026/04/youtube-increases-premium-price-again-says-90-second-unskippable-ads-are-a-bug/).
>
> A significant chunk of Google’s revenue comes from investments. When you subtract those non-cash earnings, Google’s operating cash flow for Q2 2026 was about $39.1 billion. That’s not the most the company has ever seen, but it’s a healthy 40 percent increase from Q2 2025. The problem is that Google’s spending has also gone up—a lot.
>
> [**...read more at arstechnica.com**](https://arstechnica.com/google/2026/07/google-just-had-its-first-negative-cash-flow-quarter-ever-due-to-massive-ai-spending/)