Alphabet's Q2 cash flow turned negative by $5.9 billion due to massive AI infrastructure investments, despite exceeding earnings expectations. The company raised its full-year capital expenditure guidance by $15 billion to between $195 billion and $205 billion, with further dramatic spending expected in 2027.
Hyperscaler AI infrastructure buildout is now materially impacting cash flow and driving unprecedented capex, signaling sustained, aggressive demand for compute.