Serving tech enthusiasts for over 25 years.
TechSpot means tech analysis and advice you can trust.
What just happened? In a perfect illustration of how much money companies are pouring into their AI investments, Google has just recorded its first negative free cash flow since it went public more than two decades ago. It comes as the tech giant said its capital expenditure is expected to reach $205 billion this year, up from previous guidance of $180 billion to $190 billion.
Google said its free cash flow – the cash it had remaining after paying for operations and investments – for the three months to the end of June was at negative $5.9 billion. The revelation, combined with the announcement that it would be spending even more money on AI hardware and infrastructure, sent the company's stock down 4% in after-hours trading.
It's not just this year that Google is planning on spending billions. Anat Ashkenazi, parent company Alphabet's chief financial officer, said capital expenditures will also increase significantly in 2027. Bloomberg expects the figure to reach $262 billion next year.
