Alphabet has returned to Overcome Wall Street expectations In its last quarter, with revenues of 96.4 billion dollars (14% more that the previous year) and a benefit per share of 2.31 dollars. However, like income they have risen, investment in AI as well. The company raised its investment forecast In infrastructure for this year to 85,000 million dollars, 10,000 million more than expected. An infrastructure that will well be worth not to be left behind in the AI career.
The impossible dilemma. Google is now before a paradox that can well define what happens in Big Tech: to maintain their future domain in artificial intelligence they must sacrifice much of their current profitability. It is a career in which to fall behind can mean the death of the company. A rhythm that only those that have plenty of financial muscle can participate, since it supposes burn mountains of money without guarantees of an immediate return.
The numbers that import. Google Cloud was the great protagonist of the quarter, with a growth of 32% which far exceeds the forecasts of 26.5%. This impulse has led the company to increase its investments dramatically. Together with the rest of great technology, Alphabet is part of a group that will invest More than 320,000 million dollars in AI capabilities this year. To put it in perspective: the 85,000 million that Google will spend equal to the complete GDP of countries such as Croatia or Uruguay.
The real threat. The pressure in this race is constant for companies that want to continue up, and Google has a problem that will cost you a lot to get rid of: OpenAi. And is that chatgpt already process between 15% and 20% of the daily consultation volume that Google Search handles. This makes Openai an unquestionably superior threat of what Bing was never. The search engine, which generates more than half of Alphabet’s income and three quarters of its benefits, is losing ground in the face of consultations by generative.
A lot of investment in AI, without guarantees. Google’s response has been aggressive, and The last Google I/O It was key to understanding everything for which the company is betting on AI. In just two months, his Ai mode reached 100 million monthly active users, while Gemini It already exceeds 450 million. However, these figures, a priori fantastic for the company, are still a reflection of Google’s great commitment to AI, a bet that nothing guarantees them to the rest of sharks that pursue the same goal.
And now what. The company has already advanced that infrastructure spending will continue to grow in 2026. Investors, for the moment, seem willing to tolerate this financial bleeding, but their patience is not eternal either. What is clear is that Google does not want to be left behind, and will do everything in your hand to continue dominating.
Cover image | Adarsh Chauhan
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