Google and Tesla shares plunge as AI spending rattles markets

Core point

Shares of Google and Tesla fell sharply as investors reacted to rising expenditures on artificial intelligence. Google's parent company, Alphabet, reported a negative free cash flow for the first time since going public in 2004. The company plans to spend up to $205 billion this year, primarily on AI projects. Tesla also anticipates spending up to $25 billion on unspecified projects this year.