tech
Even Google couldn't out-earn its AI spending this quarter
Google reports negative cash flow due to AI spending, raising capex forecast as infrastructure costs rise.
TL;DR
- Google's Q2 free cash flow was negative $5.9 billion, its first such report in decades.
- This negative cash flow is attributed to rising capital expenditures for AI data centers and hardware.
- Google has increased its full-year 2026 capex forecast to $195-$205 billion.
- The company expects capex spend to increase 'significantly' in 2027.
- Other major tech companies like Amazon, Microsoft, and Meta are also planning substantial capex increases.
- Rising costs for memory chips and other materials are contributing to higher infrastructure spending.