High-fidelity general audio compression at ultra-low bitrates is crucial for applications ranging from low-bandwidth communication to generative audio-language modeling. Traditional audio compression methods and contemporary neural codecs are fundamentally designed for waveform reconstruction. As a result, when operating at ultra-low bitrates, these methods degrade rapidly and often fail to preserve essential information, leading to severe acoustic artifacts and pronounced semantic distortion. To overcome these limitations, we introduce Generative Audio Compression (GAC), a novel paradigm shift from signal fidelity to task-oriented effectiveness. Implemented within the AI Flow framework, GAC is theoretically grounded in the Law of Information Capacity. These foundations posit that abundant computational power can be leveraged at the receiver to offset extreme communication bottlenecks--exemplifying the More Computation, Less Bandwidth philosophy. By integrating semantic understanding at the transmitter with scalable generative synthesis at the receiver, GAC offloads the information burden to powerful model priors. Our 1.8B-parameter model achieves high-fidelity reconstruction of 32kHz general audio at an unprecedented bitrate of 0.275kbps. Even at 0.175kbps, it still preserves a strong intelligible audio transmission capability, which represents an about 3000x compression ratio, significantly outperforming current state-of-the-art neural codecs in maintaining both perceptual quality and semantic consistency.