Alphabet's Strong AI-Driven Performance Amid Rising Capex

3 months ago

John Tucker

"Uh, tech standout this morning. You want to guess what it is? Yes. Alphabet uh reporting a surge in demand for the cloud and artificial intelligence services of the quarter just ended. So that's pleasing investors. Uh they sent the shares up even as the company said that uh capital spending for the year will be higher than expected. So third quarter sales this is when you strip out the uh the partner payouts rose to 87.5 billion. The company's investing record amounts to try to push progress in AI and infuse answers and assistance from the large language model that it has, Gemini, uh, into some of the popular products, including search. So, the company says capex for the year is going to be 91 billion to 93 billion. That's up from the 85 billion of earlier estimates. And what seems to set it apart from Microsoft and Meta is that Alphabet was able to prove to investors that spending on artificial intelligence is uh actually paying off."

John Tucker highlights Alphabet's robust performance driven by surging demand for its cloud and AI services, emphasizing the company's significant increase in capital spending and its success in integrating AI into core products as a key differentiator from competitors.

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