Alphabet Shares Plunge 12.6% on AI Spending Doubts
Google parent Alphabet's shares fell 12.6% after the company reported 25% revenue growth. Investors are questioning returns on its AI spending, with quarterly infrastructure spending above $51 billion. Lower advertising revenue from AI-powered Search queries added to the concern.
Context
Context: Alphabet is the parent company of Google, and big tech firms are spending heavily on AI data centres and chips. Investors now want to see clear returns on that spending, which is a key question for the wider AI boom.
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