"Alphabet said on Wednesday it was targeting capital expenditure of $175 billion to $185 billion this year, in yet another aggressive ramp-up in spending from the Google parent as it deepens its investments to push ahead in the AI race. Analysts on average had expected Alphabet to spend about $115.26 billion this year, according to data compiled by LSEG. Shares of the company fell more than 6% in extended trading."
"Revenue at Google Cloud grew 48% to $17.7 billion in the fourth quarter ended December, compared with analysts' average estimate of a 35.2% jump, according to data compiled by LSEG. Cloud computing majors have poured hundreds of billions of dollars to grow their AI infrastructure, both to meet the growing enterprise demand for their cloud services and to fuel their own development of AI technologies and products."
"Like larger rivals Amazon Web Services and Microsoft's Azure, Google Cloud has been grappling with capacity constraints that have dented its ability to fully cash in on AI demand from its customers. Along with Meta, the three cloud companies are expected to collectively shell out more than $500 billion on AI this year. Meta last week hiked its capital investment for AI development this year by 73%, targeting spending between $115 billion and $135 billion, while Microsoft also reported record quarterly capital expenditure."
Alphabet is targeting capital expenditure of $175 billion to $185 billion this year to deepen investments in AI infrastructure. Analysts had expected about $115.26 billion, and the higher guidance sent shares down more than 6% in extended trading. Google Cloud revenue grew 48% to $17.7 billion in the fourth quarter ended December, above analysts' estimate of 35.2% growth. Cloud providers have invested hundreds of billions into AI infrastructure to meet enterprise demand and develop AI technologies, but capacity constraints have limited some companies' ability to fully monetize demand. Together with Meta and Microsoft, major cloud firms are expected to spend over $500 billion on AI this year.
Read at Fast Company
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