Google’s Flashy New Model Gets Outshone By Its Financial Troubles

Artificial Intelligence Google’s Flashy New Model Gets Outshone 's "strongest" model so far did not distract from the $3 billion free cash flow drop. 28, 2026, pm ET Reading time 3 minutes Google CEO Sundar Pichai © Finn Gomez / Staff via Getty Read Later Read Later Comments (8) Google’s free cash flow continued tanking in its third quarter of the year. The tech giant had reported its first negative free cash flow figure as a public company back in July in its second quarter earnings, when it came in at negative $5.9 billion. On Wednesday, Google reported that number had dropped even lower to negative $9.07 billion. The quarterly revenue of $127.58 billion also missed market expectations, and the tech giant reported that its long-term debt was up to $125.1 billion. The company also shared that it had made future purchase commitments of roughly $1 trillion. Meanwhile, executives shared that they are planning to spend significantly more money in the next fiscal year than they did this year. Google is expecting to have spent somewhere between $195 billion and $205 billion this fiscal year. The vast majority of that money is going towards AI infrastructure, Google’s chief financial officer Anat Ashkenazi said on the earnings call, and the capex investments, in turn, drove the free cash flow drop. Google executives tried to convince analysts on the earnings call that the return on that hefty AI investment would be huge. The model is apparently being tested first . Still, none of the promises, whether it be ROI expectations or new advanced AI models, seemed to convince investors, as shares were down roughly 11% after market close. Google’s recent struggles are particularly interesting. The tech titan is investing heavily in AI and launching some strong models and infusing the technology across its entire business, including deep across its moneymaker product, Google Search. And , users are adopting Google’s AI initiatives too. But those wins are still not showing up in its financial results, and on the contrary, are aiding these record free cash flow drops. Google’s results come at a time when the AI bubble question is once again starting to crowd market experts’ minds. Last month, investor Michael Burry said that he is expecting an AI bubble burst to “play out over the next year.” The AI Brief A daily briefing on the AI news you need to know to start your day. The picture also doesn’t seem great outside of tech.