Google's $205B AI Spend and a Broken 22-Year Streak

Google raised its 2026 capital-spending guidance to as much as $205 billion — up from $190 billion the prior quarter, a $15 billion increase driven almost entirely by AI infrastructure, split roughly 60% to infrastructure and 40% to data centers. A widely-shared post claims the increase pushed Google cash-flow negative for the first time since its 2004 IPO, though Google's own figures haven't confirmed that label. The Verge confirms the spending guidance; the cash-flow-negative claim remains a strong inference pending an earnings-call transcript or quarterly filing. The stock dipped on the news, a shift from a two-year stretch where capex announcements were rewarded, and analysts frame Google's third quarter as close to make-or-break for a competitive frontier model release.

 ...