Alphabet's stock falls 12%+, wiping a record $500B from its market cap, after reporting negative cash flow amid its AI spending; the Nasdaq falls 1.4%+ (Stephen Morris/Financial Times)

Alphabet shares fell more than 12%, erasing a record $500 billion in market capitalization, according to the Financial Times. The decline followed reports of negative cash flow driven by increased spending on artificial intelligence. The Financial Times also noted that the company admitted its "AI mode" has impacted traditional search, leading to sales and profits that fell below expectations.

Investing.com reports that Alphabet shares slid 11.5% in premarket trading, which put the company on track to lose more than $450 billion in market value. The company reported disappointing search advertising results and accelerated cash burn due to AI-related spending. This decline accounted for most of the more than $660 billion in market value the Nasdaq-100 was on track to erase. Meanwhile, the Nasdaq fell 1.4%+.

Brief written by urgent.news from Techmeme, Investing.com — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.