Google burning through cash with spiralling AI costs

Anat Ashkanazi, Google's chief financial officer, noted on a call with financial analysts that the company had shown negative free cash flow due to growing capital expenditures, essentially all of which was related to AI spending.

Google parent Alphabet saw its business continue to grow in recent months, yet rising spending on artificial intelligence (AI) infrastructure pushed its free cash flow into negative territory.

Vaibhav Taneja, Tesla's chief financial officer, said during a call with analysts that the company will spend as much as $25bn this year, more than double its capital spending in 2025.