Big Tech
Alphabet’s Shares Drop as Investors Wait for AI to Pay Off
- Industry’s race in artificial intelligence fuels cloud demand
- CIO Ruth Porat says company looking for acquisition targets
WATCH: Melissa Otto of S&P Global Visible Alpha examines Alphabet’s earnings.
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Alphabet Inc. shares fell after the Google parent sunk more resources into its drive to outmatch rivals in artificial intelligence, fueling spending higher than analysts expected.
Capital spending rose to $13.2 billion in the second quarter, supporting Google’s AI programs and computing power needs, the company said Tuesday. That exceeded analysts’ estimates of $12.2 billion.