For Google and other tech titans, the rise of artificial intelligence remains a big focus for investors as the emerging technology reshapes the tech landscape, transforming the business of search, cloud and advertising, but it also comes with a cost.
Shares of Google parent Alphabet fell more than 7% on Wednesday, a day after the company reported quarterly results. Despite beating expectations on many key metrics, the company said capital spending will jump in 2024 as it continues to invest in AI to improve its services.
“We do remain very committed to investing in the AI opportunity across Google DeepMind, Google services, Google Cloud,” Ruth Porat, the tech giant’s chief financial officer, told FOX Business’ Susan Li. “Capex was up in the fourth quarter to $11 billion, and that was overwhelmingly the investment in our technical infrastructure.”
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