Google has reported its financial results for the second quarter of 2026, and despite raking in an astounding $119.8 billion in revenue, the search giant is spending so much on artificial intelligence that it's facing its first negative cash flow quarter.

The largest chunk of Google’s income came from search, accounting for a whopping $63.3 billion. Google Cloud also saw significant growth, pulling in $24.8 billion and growing by 23.8% from the previous quarter. It’s clear that there is immense demand for Google's AI services.

However, as the company pours more resources into AI infrastructure, it has had to pay a heavy price: negative cash flow of -$5.8 billion in Q2 2026. This comes after Google announced it was planning to spend $205 billion on infrastructure in 2026, well above the $91 billion spent in 2025.

The company’s operating cash flow for Q2 2026 was around $39.1 billion, a healthy 40% increase from the same period last year. But its revenue from investments now outweighs this, with spending on AI infrastructure far outstripping income.

Google is not alone in this AI arms race; other tech behemoths are also burning cash to build and run data centers that power their AI models. For Google, the question remains: can the hype surrounding AI keep up with its astronomical costs?