Alphabet, the parent company of Google, stated that sales that were not less than Wall Street, which have retracted the disappointed growth of the company’s cloud computing department, which sells the company’s artificial intelligence tools to other companies.
Silicon Valley Giant has recorded revenues of $ 95.5 billion in the last quarter, an increase of 12 percent over the previous year, but less than 96.6 billion dollars expected by Wall Street analysts. The profit amounted to 26.5 billion dollars, an increase of 28 percent, which won the appreciation of analysts, with a small difference of $ 26 billion.
Google’s cloud department has become an essential component of the company’s transition to obstetric artificial intelligence, a technology that created a spending boom in and outside Silicon Valley. Google Cloud sales amounted to $ 11.95 billion in the fourth quarter, an increase of 30 percent from the previous year, but less than $ 12.2 billion expected by analysts.
The results raise questions about whether artificial intelligence will prove a feature for Google Cloud, which remains smaller than the competing services from Amazon and Microsoft. Alphabet has invested a huge amount to try to enhance their offers of artificial intelligence, amid fears of investors that American companies may spend a lot on artificial intelligence for their Chinese counterparts.
The Internet giant announced that it will spend $ 75 billion in capital expenditures in 2025, which is an acceleration of last year.
The shares of the alphabet decreased by 6 percent in post -sales circulation.
Deepseek in the Chinese AI caused the fall of the American market last week after the Chatbot app rose in its popularity. Dibsic said it trained its system for only $ 6 million, which is a small part, which mastered technology giants such as Google Enved. Alphabet shares achieved great success, among others, although he recovered. Since then, the informed of the technology industry questioned some Deepsik’s claims.
However, the episode highlighted the decisive need of Alphabet to obtain Amnesty International to properly maintain its digital services related to consumers and companies that were not more condemned to options.
Google search engine, which is seen as vulnerable to the transmission of artificial intelligence trends because Chatgpt from Openai took the world in a storm in 2022, has been held so far. The most popular research product in the world, and in the fourth quarter, still achieved revenues of $ 54 billion. Analysts expected $ 53.4 billion.
As Alphabet continues to invest in artificial intelligence, it also continued in efforts to reduce other costs, including labor power discounts. Last week, the company said it has offered voluntary purchases for employees in the platforms and devices department, which is responsible for the Chrome web browser and pixel smartphones. The company also reduced nearly twenty roles in YouTube this week, according to an email seen in the New York Times.
YOUTube’s ads sales increased by 14 percent to $ 10.5 billion, above $ 10.2 billion expected by analysts.
