Google spending more than it is earning for the first time ever due to AI

Google reported negative free cash flow in the April-June 2026 quarter, marking the first time that the firm has spent more than it earned in a quarter. Google's operating cash flow stood 40% YoY higher at $39.1 billion, but it spent $44.9 billion on expanding its AI services, bringing the cash flow to -$5.8 billion. However, Google remains profitable.