The quarterly earnings for Google’s parent company beat analysts’ expectations on Wednesday, though the results could lead to intensified scrutiny over tech firms’ high AI spending.
Alphabet’s spending doubled since the same period last year, and its report is the first major test of investors’ patience over the record capital expenditures tied to the AI boom, which have yet to generate clear, measurable returns.
Tesla investors, on the other hand, are worried the EV giant isn’t spending enough on AI to deliver on its ambitions: It’s currently not on track to meet CEO Elon Musk’s forecasted $25 billion in 2026 capex. The company’s shares fell Wednesday after it reported weaker-than-expected earnings.
