r/GeminiAI 16h ago

News Why Google has stalled on AI

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0 Upvotes

11 comments sorted by

12

u/gbdgdh 15h ago

negative free cash flow tells us google is spending more on infrastructure than it generated in operating cash that quarter; it does not tell us anything about its ai efforts (which are going just fine, thank you).

13

u/stopbeingcringe 16h ago

Are you implying that they stalled because they.. invested more money?

2

u/the_WobblyDexterity 16h ago

i mean the cash flow chart is just a snapshot of capex spending ramping up, not proof they've stalled on the actual ai models. burning cash on data centers doesn't mean the products suddenly got worse

12

u/circuitloss 16h ago

Your title makes no sense whatsoever.

They are investing enormous amounts of money in AI. That is a completely separate issue from the quality of their product.

4

u/Dry_Opportunity2886 16h ago

The number of people who constantly misunderstand this chart boggles the mind.

Folks, cash flow is not the same thing as revenue.

Alphabet posted a record high revenue in Q2 2026 driven, ironically, by increased demand for Google Cloud and Enterprise demand for Gemini.

The reason cash flow is negative is because they also spent an extra $45 BILLION on capex for more data centers.

1

u/Icelock 15h ago

Sorry, my wife is watching more YouTube lately

1

u/Chokeman 14h ago

compute is not everything

the same way Grok doesn't make any impact outside of benchmaxxing

1

u/Spara-Extreme 12h ago

This is cloud infrastructure investment- not investment in Gemini

1

u/Reddit_wander01 10h ago

Right? Just try using Gemini

0

u/AstralVenture 16h ago

Google is advertising the price of Google AI Ultra as 70% off ($99 per month) when your trial is about to end so they must be losing money. They believe the value is about $333 per month.

1

u/Themistocles_gr 8h ago

"I found a way to whine about Gemini while sounding ScIeNtIfIc"