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Google was cash-flow negative in Q2 2026, and is raising a lot of debt. I am not sure they can afford to subsidize Gemini more than they already do.
by surgical_fire 2mo ago
Google was cash-flow negative in Q2 2026, and is raising a lot of debt.
I am not sure they can afford to subsidize Gemini more than they already do.
- surajrmal 2mo agoNotably that's not due to subsidization but rather due to investment in capex for future growth. The reason to not subsidize is largely because of already being hardware constrained. There is no extra unsold capacity to use.
- surgical_fire 2mo ago> investment in capex for future growth Future growth needs to materialize for this to be profitable. Right now what they have is a cash-flow negative reality. > There is no extra unsold capacity to use. I have no evidence of this. Neither I have evidence that they would be in the position of subsidizing further AI usage.