Alphabet spent over $13 billion on data centers and AI and plans to invest about $12 billion in them in the upcoming quarters
In Alphabet’s second-quarter earnings report, Google’s advertising revenue growth slowed to 11.1%, reaching $64.6 billion, down from the previous quarter’s 13% increase—at a time when the company is heavily investing in AI.
However, total revenue rose 13.5% to $84.7 billion, with net income up 28.6% to $23.6 billion.
The Google parent company spent over $13 billion on data centers and AI and plans to invest about $12 billion in them in the upcoming quarters.
Alphabet’s Cloud sales grew 28.9% to $10.3 billion, while YouTube’s ad revenue rose 13% to $8.7 billion. Despite this, shares fell 1.4% after CFO Ruth Porat warned of higher future costs.
The tech giant’s $23 billion acquisition of cybersecurity firm Wiz collapsed, but Alphabet remains focused on cloud growth. The company will also maintain cookies in Chrome with user choice and announced a 20-cent dividend per share.
Alphabet’s workforce and real estate are also reduced, with headcount down to 181,800 from over 190,230 last year.