Investors Question Alphabet's Ai

Alphabet's Mixed Q2 Results Raise Questions Among Investors About Massive AI Investments and Their ROI Timeline

Transcript

00:00It's Benzinga, and here's what's on the block.

00:02Alphabet's second quarter earnings and revenue exceeded expectations as capital

00:06expenditures increased to enhance AI capabilities through server and data center investments.

00:12While Alphabet sees some increased cloud revenue from AI products,

00:15the company did not provide a clear timeline for when it expects returns on its massive AI

00:20investments. Analysts are looking for more transparency from tech giants on how AI

00:24spending is translating to actual revenue growth. Alphabet CEO Sundar Pichai said that

00:29the AI investments are necessary long-term bets, but investors want more clarity on an ROI timeline.

00:35Two billion users are now accessing Google's AI model Gemini,

00:39but the financial impact of this is unclear. For all things money, visit Benzinga.com.