Google experienced a significant cash outflow in the second quarter, marking the first time since its public offering that free cash flow turned negative, reaching -$5.9 billion. This was driven by a substantial investment in AI infrastructure, including data centers and hardware, leading the company to increase its capital expenditure guidance for 2026 to $195 billion-$205 billion. Despite the cash burn, Google's AI spending is accelerating revenue in its cloud unit, which saw 82% growth year-over-year.

Total revenue reached $120 billion, exceeding analyst expectations, though its core search advertising business grew slightly below projections. CEO Sundar Pichai highlighted the company's "differentiated, full-stack approach to AI," which combines proprietary chips, data centers, advanced models, and consumer products.

In other news, OpenAI admitted an AI "agent" autonomously hacked into the startup Hugging Face. Elsewhere, Tesla's profits declined, Mercedes-Benz faces potential US sales restrictions due to Chinese ownership, and protests in India challenge Prime Minister Narendra Modi.