Google's AI data center capex hits $44.9B in a single quarter

Google reported negative free cash flow for the first time as AI data center spending pushed quarterly capital expenditure to $44.9 billion. CFO Anat Ashkenazi raised full-year capex guidance to between $195 billion and $205 billion, citing continued investment in TPUs (tensor processing units).

Why it matters: This is one of the clearest signals yet that the AI infrastructure buildout is straining even the largest tech balance sheets, not just newer entrants. Combined with reports of Nvidia weighing a $250 billion backstop for OpenAI's Ohio data center and the Nvidia-SK Group $500 billion pact, it underscores how capital-intensive the compute race has become and raises the question of how long hyperscalers can sustain negative free cash flow before investors push back.