Google reported record-like second-quarter revenue but its free cash flow turned negative for the first time since it became a public company, after sharply increasing spending on AI infrastructure. The result highlights how the race to build data centres and train AI models is straining even the strongest technology companies, prompting investor concern and a fall in Google’s share price.

Revenue reached $119.8 billion, led by $63.3 billion from search and $24.8 billion from Google Cloud, while operating cash flow was $39.1 billion. However, quarterly AI-related infrastructure spending reached $44.9 billion, leaving free cash flow at minus $5.8 billion; Google has raised its planned 2026 capital expenditure to as much as $205 billion, versus $91 billion in 2025, despite holding more than $100 billion in cash.