Big Tech earnings reveal record AI spending with negative cash flow

Technology companies disclosed their latest financial results on July 31, 2026, revealing a continued surge in artificial intelligence spending that drew mixed reactions from investors.

Meta shares plunged to their second-lowest level in a year after chief executive Mark Zuckerberg outlined plans for an autonomous AI agent and a business to sell AI tools to other firms, neither of which currently generate revenue. In contrast, Microsoft’s stock hit a six-month high, and Amazon’s reached its highest price in two months, buoyed by strong performance in other areas despite heavy AI expenditure.

Alphabet, Google’s parent, reported negative free cash flow on revenue of $118 billion for the first time in its history as a public company, meaning it spent more than it earned. Meta’s free cash flow was just $784 million on $61 billion in revenue, and its Reality Labs division lost nearly $9 billion in the first half of 2026.

Amazon plans to spend $220 billion on AI this year, while Microsoft aims to match the $190 billion it spent over the previous 12 months. Meta expects to pour more than $140 billion into AI in 2026.

The AI investment race, sparked by OpenAI’s release of ChatGPT in late 2022, has led each company to launch consumer-facing chatbots—Meta AI, Google Gemini, Amazon Rufus, and a relaunched Apple Siri—but these tools have not yet become significant revenue drivers.

Forrester analyst Tracy Woo said Microsoft is one company where massive AI investments are “beginning to deliver returns,” as its core AI tool saw increased adoption and strong revenue growth.

Google said in late July 2026 that 950 million people use its Gemini chatbot at least monthly, triple the number from a year ago. Apple said on July 30 that new versions of its Mac, iPhone, and iPad are selling better than expected, though it warned that sales would slow due to a shortage of microchips.

Outgoing CEO Tim Cook expressed enthusiasm for the upcoming Siri overhaul, which will integrate Google’s Gemini chatbot, and said Apple plans to charge users who want heavier use of the new assistant based on user testing feedback. “We’re off-the-charts excited about Siri AI,” Cook said. “We do believe there will be people who want to use it – a lot.”

The earnings underscore a pivotal moment: while AI tools have not yet proven to be a consumer tech revolution on the scale of the internet or electricity, companies are betting heavily that the investments will eventually pay off.