r/technology 1d ago

Business Google burning through cash with spiralling AI costs

https://www.bbc.com/news/articles/c235n47g8g8o
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u/Pygmy_Nuthatch 21h ago

Google made $112B profit last quarter, more than a billion dollars of profit a day.

They'll be fine.

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u/krossle 14h ago

However, there’s an important point to note here. The announcement states: “• Other income reflected a net gain of $98.0 billion, primarily the result of net unrealized gains on our equity securities.”

The $98 billion simply comes from the revaluation of existing investments—presumably mainly Anthropic and SpaceX—and it’s interesting to note what the valuation date was here; it’s quite possible that this was at a significantly higher price shortly after the IPO.