Alphabet’s cash burn raises alarm for Big Tech as AI spending climbs

Alphabet’s first cash burn on record has jolted investors awaiting more Big Tech results next week as soaring AI spending strains one of the world’s most profitable companies, and the pain is only expected to increase.

The Google parent burned $5.9 billion in the second quarter, even as the ​cloud unit that rents out AI computing power notched a record 82% growth. With Alphabet now expected to spend $15 billion more in 2026 and predicting another increase next year, the outlays behind the cash burn will only rise.