Google posts its first negative cash flow quarter on AI spending

Google reported a negative cash flow quarter for the first time, driven by sharply rising AI infrastructure spending. Revenue is still growing, but capital outlays have now outpaced cash generation.

Why it matters: This is a concrete financial data point in the growing 'AI capex is unsustainable' debate, alongside the $1.65 trillion in off-balance-sheet AI infrastructure debt and Google's own raised 2026 spending guidance of $195-205 billion, both recently covered. When even Google, sitting on huge cash reserves, goes cash-flow negative, it tightens the market's patience for capex growth at peers with weaker balance sheets.