Big tech giants Alphabet and Tesla are facing investor unease despite strong revenue growth, as both report negative free cash flow — a first for Alphabet since its 2004 IPO — signaling massive spending on AI. Alphabet’s AI push has driven up its capital spending forecast to $205 billion this year, while Tesla is pouring resources into self-driving tech and robotics, even building a new chip factory with Intel and SpaceX. The market is now focused on whether this aggressive investment in AI will pay off — and whether the era of effortless cash flow is truly over.

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