what to watch for
How Alphabet’s spending compares to its mega-cap competitors. The company reported $44.9 billion in capital expenditures through its latest quarter, doubling its figure last year. Earlier estimates from Amazon, Alphabet, Microsoft and Meta indicated the firms would spend up to $750 billion this year as each worked to match growing demand for AI products.
big number
$97.8 billion. That’s how much Alphabet earned from “other income,” up from just $2.2 billion last year. Alphabet said the bump largely came from its equity securities, which include investments in Anthropic and SpaceX.
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key background
Alphabet’s three years of quarterly revenue growth reflect the tech giant’s aggressive pivot toward AI. The Google parent has committed hundreds of billions of dollars to build data centers and other AI projects, and the firm reportedly has plans to develop a new in-house AI chip that Google engineers expect to be up to 10 times more energy-efficient than its predecessor. Pichai said Alphabet’s AI investments are “redefining what’s possible across every part of our business,” noting its “full-stack approach to AI delivering real, measurable value” to consumers.
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further reading
ForbesAlphabet Rally Boosts Google Cofounder Fortunes By $15 Billion—Here’s Why Shares Are UpBy Ty Roush