Google burning through cash with spiralling AI costs

Core point

Google's parent company, Alphabet, reported a negative free cash flow of $5.9 billion for the first time in a decade. The company's spending on artificial intelligence is projected to reach $205 billion this year, up from $190 billion. Alphabet's quarterly revenue increased by 23% to $119.8 billion compared to the previous year. Despite this growth, the company's stock fell by 4% in after-hours trading.