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Written by Deborah Mary Sophia and Zuhair Kashwala
(Reuters) – The alphabet will face an audit of investors because of its massive spending on artificial intelligence when it is reported on Tuesday, as the growth of revenue in Google is likely to slow down on a quarter of the holiday due to its slowdown in its advertising and cloud work.
Like the heavy weights of other American technology, Alphabet faces a new audit on its capital expenses after the Chinese company Deepseek last month launched the low -cost Amnesty International models threatening to push the artificial intelligence industry into a price war.
It is estimated that the capital expenditures in Alphabet were $ 50 billion for the past year, according to LSEG, with greater planning for 2025 to support its cloud expansion and search features driven by artificial intelligence, including summaries, which are vital to defending its share in the market and attracting more ads profit.
Executive officials from Microsoft and Meta favored the huge spending plans for Amnesty International last week, saying they were accountable to move forward in the new field.
Meanwhile, the cloud growth in Google is expected to diverge in the fourth quarter amid high expectations for this sector.
“Although the growth rate (in the cloud unit) is expected to slow down, the high investment will continue, but the gains of efficiency have been kept crowded.” Susanna Streter, the head of money and markets, said, Susana Stiter, Hargreaves Lansdown.
Revenue is expected to increase from Google and other business by 11.2 % in the fourth quarter, according to Alpha’s visual estimates, compared to an increase of 12.2 % in the third quarter.
In general, Alphabet’s revenues are expected to increase by 11.9 % to 96.6 billion dollars, and slower from the third quarter, according to estimates collected by LSEG.
The company – which is used for search services and YouTube that is used on YouTube more than two billion people every month – is trying to keep its dominant share in the search market market amid the increasing competition from the Amazon.com e -commerce company and social media applications such as Tiktok.
The spending of higher political advertisements on the US presidential election may have helped Google in the fourth quarter, after Meta’s owner on Facebook also informed an increase in advertising revenues.
However, Meta’s expectations in the first quarter of Meta have raised concerns about the expenses of the advertising market with an increase in economic uncertainty with the threat waving on the horizon in the global definitions.
Cloud focus
Expectations are high for Google cloud work after the sector has achieved its fastest growth in two years in the quarter of September, thanks to the increasing AI spending by companies.