Alphabet’s profits soared—but mostly thanks to a massive, non-cash boost from SpaceX and Anthropic investments. Behind the headlines? Their first-ever negative free cash flow, signaling they’re spending more than they’re earning. This isn’t an isolated case: major tech firms are now drowning in AI costs, turning to debt, stock sales, and even rival investments to keep up. Investors are feeling the heat—Alphabet and Tesla both saw stock dips after reports. The problem? AI’s explosive growth is outpacing revenue, forcing companies to pour billions into hardware and infrastructure with long payback periods. Once lean, these giants are now capital-hungry beasts—and the market is watching closely to see if their AI bets will finally deliver.
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