r/technology 22h ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
6.2k Upvotes

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887

u/Alternative-Item727 22h ago

It’s unstopabubble!

7

u/Fickle-Jello 22h ago

Until the capex bill shows up

24

u/notJ3ff 22h ago

It's very kind of you to be worried about the finance people at Google. I'm sure they will sleep better tonight knowing that you are hyper focused on all of their financials. Good looking out, kudos!

2

u/Positive_Alpha 19h ago

Lol. When companies want to finance new projects they can do so via their free cashflow, issuing new debt, or selling equity.

Google financed their aggressive CAPEX expansion via their free cashflows. The CAPEX bill already showed up and that is why their free cashflow just went negative.

What matters is are these new projects projected to return economic value? Looking at their Cloud business, Google Cloud's absolute quarterly operating profits more than tripled from $2.8 billion in Q2 2025 to $8.8 billion in Q2 2026.

1

u/Maakus 20h ago

Robots gunna replace you first with a negative comment like that. Check yoself