Google faces rising AI expenses

Google's parent company, Alphabet, has increased its AI-related spending significantly, expecting to reach up to $205 billion this year, which has resulted in negative free cash flow for the first time in at least a decade. Despite rising quarterly revenue, the company's cash flow fell to negative $5.9 billion due to high capital expenditures mainly for AI infrastructure. Alphabet plans to continue investing heavily in AI as demand outpaces investment, with the company's CEO describing ongoing AI development as still in early stages.

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