Feels like the innovative part of google does not exist any more.
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“Negatice cash flow.”
God I fucking hate corporate jargon double speak.
Sorry, not hate, I double minus good it.
Negative cash flow means profits are down
It‘s even net profits (after expenses) are negative, right?
Feels like this article got too excited about the headline and the actual meat of the text is lacking in context.
First negative quarter since when? Obviously Google didn’t spawn wholesale making money. Had to look around and it’s their first negative cash quarter since 2004 when it went public. (I assume there’s no real public data before then)
The ars article says
To be clear, Google is still profitable—wildly so.
How can something be profitable, but also have negative cash flow?
Legitimately confused here. Is “cash flow” some hyper specific business term for a very narrow type of money exchange, while profit comes from a different line item?
This is a rare miss from ars, but a HUGE miss.
How can something be profitable, but also have negative cash flow?
It’s been about thirty years since I took an accounting class, but I think capital expenditures like this AI spending are amortized (deferred?) over several years and don’t fully count towards present expenses. So the chunk that counts for this quarter/year can still be small enough to make the company profitable (income > expenses). Free cash flow I would guess is money that came in minus money actually spent, so something like a $1m capital expenditure might count as $100k for this year’s expenses but the full $1m for calculating cash flow.
The question is what would happen if they didn’t spend on AI.
People got used to instant answers from chatgpt and perplexity. If Google didn’t follow, their market share would slowly drop
Would it? I turned off the AI answers from Google and most of the people I know also ask how to turn it off.
In my circle, most of the people I know are more annoyed by it than helped by it.
Also, they’re getting sued in the EU by giving incorrect answers in the AI summary, cause that’s actual info FROM Google instead of answers Google is pointing to.
Sure, there’s Gemini that people are actively reaching out to for answers, but cramming it into their main product is way more of a miss for me and the people I know in real life.
I use Gemini for search more then google these days. Wading through all the outdated and useless results is very annoying.
Well with all the money they pumped into ai they could have instead worked on making their search engine better at returning relevant and accurate results. Then when people clocked the fact that ai was giving them 50% bullshit, they would realise the juice is worth the squeeze with actually getting accurate info
Very true search is basically useless these days especially for technical stuff.
Fucking idiots, the entire management of Google is far worse than useless, more like economically suicidal.
Finally google is losing money
