Alphabet faces scrutiny on AI spending as Google cloud growth slows

Alphabet Under Scrutiny for AI Spending Amid Slowing Google Cloud Growth
As Alphabet prepares to report its earnings on Tuesday, the company is likely to face increased scrutiny from investors regarding its substantial investments in artificial intelligence. Revenue growth at the parent company of Google is expected to have slowed during the holiday quarter, primarily due to a downturn in its advertising and cloud business sectors.

The situation is further complicated by the recent launch of low-cost AI models by Chinese startup DeepSeek, which poses a competitive threat and could ignite a price war within the AI industry. Reports indicate that Alphabet’s capital expenditures reached approximately $50 billion last year, with additional investments planned for 2025 aimed at enhancing its cloud services and developing AI-driven search features, such as summaries, which are crucial for maintaining market share and boosting advertising revenue.

For more details on the topic: https://finance.yahoo.com/news/alphabet-faces-scrutiny-ai-spending-194627114.html
#AI #Technology #ArtificialIntelligence #CloudComputing #Advertising #Alphabet

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