← The economics of intelligence

What can we learn from Google’s AI data?

A first look at Alphabet’s SEC filings. No conclusions yet.

How much is Google investing in infrastructure?

Capital expenditure and R&D, in billions of dollars. Capex includes more than AI.

Capital expenditureR&D

How much operating profit does Google make?

Revenue minus operating expenses, including depreciation. In billions of dollars.

How much free cash flow does Google make?

Operating cash flow minus capital expenditure. In billions of dollars.

How quickly is Google Cloud growing?

Google Cloud revenue, in billions of dollars.

How fast is Cloud revenue growing?

Change from the same period one year earlier.

Is Google making intelligence cheaper?

Major Gemini text models, newest first. Prices are the standard API price at release or first stable release, per one million tokens. For models with prompt-length tiers, this uses the cheaper tier.

ReleasedModelInputOutputEst. Size
Aug 20263.7 Flash$0.75*$3.75*~50–150B
Jul 20263.6 Flash$0.75*$3.75*~50–150B
Jul 20263.5 Flash-Lite$0.30$2.50~10–30B
May 20263.5 Flash$1.50$9.00~50–150B
May 20263.1 Flash-Lite$0.25$1.50~10–30B
Feb 20263.1 Pro$2.00$12.00~100–300B
Dec 20253 Flash$0.50$3.00~30–100B
Nov 20253 Pro$2.00$12.00~100–300B
Jul 20252.5 Flash-Lite$0.10$0.40~5–15B
Jun 20252.5 Flash$0.30$2.50~20–60B
Jun 20252.5 Pro$1.25$10.00~100–300B
Feb 20252.0 Flash-Lite$0.075$0.30~5–15B
Feb 20252.0 Flash$0.10$0.40~20–60B
Sep 20241.5 Flash-8B$0.038$0.158B
May 20241.5 Flash$0.35$1.05~20–40B
May 20241.5 Pro$3.50$10.50~175B
Feb 20241.0 Pro$0.50$1.50~30–100B

*Introductory price through December 2026. The announced standard price is $1.50 input and $7.50 output. Except for 1.5 Flash-8B, Google does not disclose model size. These are very rough active-parameter guesses based on reported model tier, price, speed and performance. They could be wrong, especially if the models use a mixture of experts.

Sources: Alphabet 10-K and 10-Q filings filed with the SEC; Google’s Gemini API pricing and release notes. Free cash flow is calculated as operating cash flow minus capital expenditure. Google Cloud includes more than AI. Capital expenditure and R&D also include non-AI spending. Historical model prices can change after release.