Google’s parent company burned $5.9 billion in cash after ramping up AI infrastructure investments to $44.9 billion in Q2.
Alphabet reported its first quarterly negative free cash flow since its 2004 IPO, with a $5.9 billion cash burn in Q2. The company spent $44.9 billion on AI infrastructure, equating to roughly $490 million daily, while generating $39.1 billion in cash over the same period.
Revenue rose 24% to $119.8 billion, marking 12 consecutive quarters of double-digit growth. Google Cloud revenue surged 82% to $24.8 billion, with operating profit jumping to $8.8 billion from $2.8 billion year-over-year. The company’s backlog reached $514 billion, reflecting strong demand.
Shares fell 4.24% in after-hours trading after Alphabet announced plans to increase full-year spending by an additional $15 billion, despite earnings per share of $9.11 and revenue beating estimates.