# Why Are Big Tech Companies Losing Money? AI investments are pushing companies into financial difficulties. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-07-23 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/4ff0e61a-fc65-4e77-bd05-ec286148b1b2 ## Alphabet's Record Profit Alphabet had its most profitable quarter ever, earning $112 billion. However, a significant portion of this profit came from stakes in SpaceX and Anthropic, not core business operations. ## Growth in Cloud Business Google's cloud computing business grew by 82%, becoming the new core of the company. This growth highlights the tech giant's future focus. ## Negative Cash Flow Alphabet experienced negative cash flow for the first time in its history. This indicates that the company's expenditures exceeded its revenues, worrying investors. ## AI Investments The company is making significant investments in AI infrastructure. While these investments create short-term financial pressure, they are expected to yield long-term profitability. ## Wall Street's Reaction Investors pushed Alphabet's shares down by nearly 7%. This marked one of the worst days in the company's history. ## Future Expectations Experts believe Alphabet's AI investments will be profitable in the long term. However, short-term financial challenges may persist. ## Sources covering this story - https://fortune.com/2026/07/23/ai-big-tech-never-spend-more-than-earns-wall-street-hates-it/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._