Alphabet faces scrutiny on AI spending as Google cloud growth slows
Briefly

Alphabet is preparing for investor scrutiny regarding its aggressive AI spending as it reports earnings amidst a slowdown in advertising and cloud growth. Last year's capital expenditure was around $50 billion, with plans for additional spending in 2025 to enhance cloud services and AI functionalities, essential for maintaining market share. While Google Cloud's growth may decelerate, significant investment is expected to continue. Alphabet's overall revenue is projected to grow 11.9% to $96.6 billion, signaling a decline in growth rate compared to previous quarters.
Alphabet will face investor scrutiny over its massive spending on AI when it reports earnings, with revenue growth likely slowed due to a downturn in advertising.
Alphabet's capital expenditure is estimated at $50 billion for last year, with more planned for 2025 to support its cloud expansion and AI-driven features.
Read at Yahoo Finance
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