ðŸ‡ðŸ‡° English, 28 October 2026, AI spending
Alphabet's AI spending accelerates cash burn, shares plummet over 10 percent
Alphabet's AI spending accelerates cash burn, sending shares down over 10 percent in extended trading
The tech giant reported negative free cash flow of US$9.07 billion, compared with analyst expectations that it would come close to breaking even, according to data compiled by LSEG.
Alphabet’s cash burn was driven by spending to boost cloud capacity and fund AI research.
The results reflect the huge costs of the AI buildout, with investors in the sector concerned both by potential overspending and the risk of falling behind rivals by not spending enough.