Alphabet AI spending draws investor scrutiny over margins and free cash flow

Alphabet’s heavy spending on artificial intelligence has become a major focus for investors, who are weighing whether the company’s rising capital outlays will squeeze margins and free cash flow. Reuters said the issue was drawing intense market attention in the latest round of Big Tech earnings coverage, reflecting broader concern that large AI investments may take time to pay off. The debate matters because Alphabet is one of the biggest spenders in the sector, and its plans could influence investor sentiment toward other technology companies making similar bets.