Alphabet Inc. GOOGL-Q beat Wall Street revenue estimates, reporting US$96.43-billion for the second quarter, surpassing the US$94-billion projected. The growth was attributed to new AI features and a stable digital advertising market. The company plans to increase its capital spending for the year to about US$85-billion, up from a previous estimate of US$75-billion. This investment is part of a larger trend, with Big Tech expected to allocate over US$320-billion towards AI development, amid rising competition from Chinese firms and investor apprehensions about industry returns.
Alphabet Inc. GOOGL-Q reported quarterly revenue of US$96.43-billion, exceeding Wall Street estimates of about US$94-billion, driven by new AI features and a stable digital advertising market.
Shares of Alphabet decreased by 1% in extended trading, despite rising more than 18% since the last earnings report released in April.
The company revealed an increase in capital spending plans for the year to approximately US$85-billion, a rise from their earlier pledge of US$75-billion.
Alphabet and other Big Tech firms are expected to invest more than US$320-billion in developing AI capabilities, responding to competition from Chinese companies and investor concerns.
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