Gemini's one billion users can't hide Google's cash flow crisis

Published Aug 26, 2026, 7:00 AM EDT Jon Gilbert is a Features Writer for Android Police. I've covered Android since 2021, focusing on writing features and guides about Android apps and features that directly affect users. I've attended CES to uncover powerful hardware that isn't dominated by Google like the Mudita Kompakt. I trawl through Android news daily, hunting for stories that have real-world consequences. I hold a BA in History & Classics. It's no secret that Google has singled out Gemini as its flagship product. From phones to laptops to smart home speakers, the AI chatbot forms the foundation of new Google products. For critics of the service, it's easy to make the case for why one shouldn't use it. While the service has improved, Gemini still makes critical mistakes that undermine confidence in its reliability. But for Google, the numbers keep going up. Gemini is breaking records One billion monthly users is an impressive statistic, no matter how you cut it On August 11, Google CEO Sundar Pichai announced that Gemini reached one billion monthly active users and is the 14th Google product to hit that mark. At its peak in 2020, Google Assistant had 500 million monthly active users. According to Pichai, the one billion number comes from Gemini app users, but it's unclear how reliable that number is. The Play Store notes that Gemini has over a billion installs, but it hit that number in December 2025. AppMagic records just over 500 million installs since the app's launch in 2024. Gemini's ubiquity makes it hard not to use. Even when avoiding AI overviews, Gemini is embedded across all Google products. I accidentally open the Gemini interface or trigger the voice assistant multiple times a month. Google Vice President Josh Woodward expanded on Pichai's announcement with additional insights about Gemini: 63% of users talk directly to Gemini. One in five Gemini Live interactions go beyond voice (for example, video identification). "Busy" parents are 43% more likely to use voice for everyday tasks. 38% of school requests include an attachment. Small businesses love Gemini for making marketing materials. Gemini can automate actions across 40+ popular apps. Gemini is great for booking rides, reserving tables, and more. While Woodward has confusingly mixed opinion with fact here, it's clear as day that Gemini can do lots of things, and lots of people are using it to do lots of things. So full steam ahead for Gemini! But how long can it last when Google is spending more money than it can afford? Google has hit another record thanks to AI spending But this record has worrying implications Google's second quarter earnings report for 2026 revealed an alarming anomaly. While revenue jumped by about $26 billion from the second quarter of 2025, operating loss hit an all-time low of $5.8 billion. This is not only the lowest cash flow Google has had since its 2004 IPO, but also the first time it has had negative cash flow. While the company is still profitable, these gains are in unrealized assets, not hard cash. Google explicitly stated that this operating loss was driven by "shared AI R&D expenses." This kind of operating loss is only a serious problem if it continues, so we'll have to examine the next few quarterly earnings reports to see if Google can recover its cash flow. However, the only way this is possible is for Gemini to start earning more, and that's a risky proposition. Google no longer gives users a choice about Gemini It's becoming increasingly harder to avoid Let's say you love Google Pixel phones, but hate Gmail. You also hate Google Photos, Maps, Translate, and even YouTube. However, you love Google Drive. On a new Pixel phone, you can uninstall the aforementioned apps except Drive and still have an excellent experience. Google won't stop you from using alternatives, and you can enjoy whatever combination of first-party and third-party apps you want. However, Gemini is a different story. Google is now building its devices around Gemini. RAM configurations for the Pixel 11 series are explicitly chosen to support Gemini Intelligence, and hardware features on the Pixel 11 Pro and upcoming Googlebook are designed with Gemini in mind. In short, if you're buying new Google hardware and not using Gemini, you're missing the point of buying them. Buying a new Google device is no longer about its hardware; it's about how much you want to use AI. Don't like AI? Then why buy a Pixel? What happens if Gemini doesn't work as advertised? Gemini needs to start making money, and it needs to perform better to do so. Massive user counts are all well and good, but if monthly users don't start turning into increased revenue, Google is in serious trouble. Sure, Google could pull back its AI deployment, but because every Pixel phone since the Pixel 6 has been built around machine-learning Tensor chips, that would undermine the corporation's entire strategy. Google has to make Gemini work. This isn't just another product it can sunset; it's the foundation of the company. It's going to be an exciting financial year to watch, as it may determine the future of Google and Gemini. At the end of the day, I'm excited to see Google's next earnings report, a statement I never thought I would make.