Alphabet’s second-quarter results showed some progressAlphabet is raising its projected annual capital expenditures to between $195 billion and $205 billion to accelerate artificial intelligence development, causing its shares to drop by 5% at the close of trading.Bloomberg reports this.In total, four tech giants — Alphabet, Meta Platforms Inc., Microsoft Corp., and Amazon.com Inc. — have previously announced plans to spend up to $725 billion on their AI ambitions.The increase in spending is raising concerns on Wall Street about the financial return on such large-scale investments.
The company’s cloud division shows high results
Google Cloud’s revenue grew by 82% to $24.77 billion, and its contract backlog reached $514 billion due to high demand for AI infrastructure.Search advertising generated $63.27 billion, which is slightly below expectations amid competition from chatbots.The Gemini artificial intelligence system has 950 million monthly active users, with the company, competing with Anthropic and OpenAI, preparing new models, including Gemini 3.6 Flash and the announcement of the next generation, Gemini 4.The video platform YouTube exceeded analysts’ forecasts with revenue of $11.1 billion.An additional growth driver was the investment portfolio with stakes in Anthropic PBC and SpaceX, which ensured a sharp increase in net profit due to a nearly $100 billion increase in asset value during the quarter.Overall, capital expenditures in the second quarter reached $44.92 billion, total sales excluding partner payouts amounted to $103.6 billion, and net profit is $9.11 per share, significantly exceeding market forecasts.According to: Mind# AISpace for your advertisement