Lates News

Google parent Alphabet (GOOG.O) reported quarterly revenue and profit below market expectations, indicating the company has yet to generate sufficient returns from its AI business to justify its massive investments. Alphabet said revenue for the three months ended Sept. 30, excluding payments to partners, was $111.2 billion, with net profit per share of $2.12, both below Wall Street expectations. Google is racing to build AI infrastructure for itself and its customers, driving capital expenditure to record levels. These investments have helped Google rank among the top suppliers of computing power to AI companies such as Anthropic and Meta. Google is also developing its own AI models and integrating them into consumer-facing products such as its search engine, YouTube and Gmail. However, relative to the scale of spending, these efforts have so far not yielded commensurate returns. Alphabet shares fell as much as 7.9% in after-hours trading.