Comment by surgical_fire
3 days 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.
3 days 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.
Notably 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.
> 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.