Alphabet Sees Surge in AI Demand, Increases Capital Spending Amid Competition

Reported 1 day ago

Alphabet Inc. has reported a significant boost in quarterly sales driven by heightened demand for artificial intelligence products, prompting the company to escalate its capital expenditures for 2025 to $85 billion. Despite outperforming revenue expectations, Alphabet's stock initially fell, reflecting investor concerns over the mounting costs of keeping pace with competitors like Microsoft and OpenAI in the AI sector. The company aims to capitalize on its cloud computing and search advertising strengths to manage this spending amid growing competition and regulatory pressures.

Source: YAHOO

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