According to page 6, year to date in 2026, operations generated $127B in cash, and capital spending on property and equipment was $132B, so year to date, the business consumed $5B.
According to page 8, in the last quarter, operations generated $42B and capital spending was $51B, so over the past three months, the business consumed $9B.
Those figures don't include any capital spending made through off-balance sheet arrangements. No idea what those might be, or for how much Alphabet could be on the hook.
I'm curious to see if all that money invested in infrastructure will pay off. I hope it pays off, for everyone's sake, but hope is not certainty.
> generating $127B in cash, and capital spending on property and equipment was $132B, so the business consumed $5B.
I don’t discount its capabilities since around April of this year, it passed my bar for being able to do amazing things. But it has also made any interaction I’ve had with companies a living nightmare and appears to have permanently deleted my career and knocked me down 1-2 economic classes.
Advertisers on the other hand are alerted to viewbotting with increasingly sophisticated AI "users".
It was clear already two years ago that the model of AI generated "content" that is watched by AI viewbots does not work. Of course Big Tech has to steam forward and find out the hard way.
Congrats, you have ruined the entire SV business model with your fantasies derived from cheap, horribly written SciFi novels.
https://finance.yahoo.com/technology/article/google-stock-pl...
2. Youtube meh, like always (weird that it doesn't kill it)
3. Search -- this was the issue. QonQ 0.1% <-- the whole story
Everyone has expected Search to, sooner or later, crack. This looks like it may be it.
If Google had 30B in revenue from coding tools and a few billion from Gemini Enterprise then there would be a story that Google could get through this.
But GDM didn't execute. And that's that.
Who knows the bottom. More than 10-15% seems unlikely. But if search cracks again next quarter then we'll see a real revaluing of the business.
Google did not have the proper focus on AI. They should have owned the space. But there were clearly management issues.
It's a huuuge training set, why would they kill that?
Search increased revenue and profit which is good. Means that LLMs are not yet stealing revenue. But also bad because the massive spend on infrastructure doesn't look like it's going to come back as increased revenue.
That’s an amazing amount of revenue and spend, though. Wild.
hungryhobbit•53m ago
Translation: even Google ... a company that basically has a license to print money (aka Google Search) ... is losing a ton of money on AI.
olejorgenb•51m ago
JKCalhoun•50m ago
nbevans•44m ago