Alphabet faces scrutiny on AI spending as Google cloud growth slows

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Deborah Marie Sofia and Zaher Kachvala

(Reuters) – The alphabet will face its investor on its massive AI’s income on Tuesday, as Google’s parent’s income increases due to the slowdown in cloud business.

Like other US technological rays, the alphabet collides with its capital expenditures, after the Chinese launch of Deepseek began AI’s low-level models that threaten to increase the AI industry.

The cost of the alphabet is estimated at $ 50 billion last year, LSEG reports that it is more planned for 2025 to support its cloud’s search properties, including summaries.

Last week, Microsoft and Meta Platforms managers protected the AI cost plans for their weight, saying that they are very important to stay in the new field.

Meanwhile, Google Cloud growth is expected in the fourth quarter due to high expectations of the passage.

“Although the growth rate of (cloud unit) is expected to continue slowly, the investment will continue, but the profits of efficiency are still gaining profit. “Susanna Street said, the head of money and markets, Harreaves Lansdown.

In the fourth quarter, the income from searching for Google is expected to increase by 11.2%, according to visible Alpha estimates, increase by 12.2% in the third quarter.

In total, the revenue of the alphabet will increase by 11.9% to $ 96.6 billion, slower than the third quarter, according to the assessments made by the SSG.

The company is used by more than 2 billion people every month, trying to maintain its dominant share in the search advertising market with an E-Commerce Firm Amazon.com and Social Media Programs

Expenditures of higher political advertising over the US presidential election can help Google in the fourth quarter, Facebook’s owner Meta also reported promoting such advertising revenues.

The forecast of the first quarter of Meta has caused concerns about the promotional market, as economic uncertainty is growing with the wonderful threat of global tariffs.

Cloud Focus:

The expectations are great for Google’s cloud business, after the passage in two years, its fastest growth in the September quarter of the year became the cost of AI.