When Google parent company Alphabet Reports the profits on Tuesday, February 4, it would be likely to face investors’ questions on the amount it spends in artificial intelligence (IA).
It is estimated that the company spent $ 50 billion in AI in 2024 and should spend more in 2025, Reuters reported Monday February 3).
The report on Tuesday’s results should show that the growth in the company’s income has slowed down in the last quarter due to a slowdown in its advertising and Cloud activities, according to the report.
In addition, January has seen the launch of Low -cost AI models by Chinese startup In depthThis can cause a price war in the AI industry, according to the report.
The combination of the challenges of the growth of income and high investments in AI is likely to lead to a meticulous examination of investors when the profits are called, according to the report.
Other companies investing in AI have faced similar questions.
During MetaCappel of results of Wednesday, January 29, CEO, CEO Mark Zuckerberg said that it is too early to say if the innovations of the AI model at lower cost of Deepseek mean that it is time to reduce IA infrastructure expenses.
“It is probably too early to really have a strong opinion on what it means for the trajectory around infrastructure and the capex,” said Zuckerberg.
A few days earlier, on January 24, Zuckerberg said on his Facebook page that the meta invests $ 60 billion at $ 65 billion Capital expenditure. This is up $ 38 billion in 2024. Zuckerberg said that more computing power was necessary for Meta Ai, the company assistant from the company who was deployed in his social networks and his devices and is now used more than a billion people.
Microsoft held a call for results Thursday, January 30, in which CEO Satya Nadella said that “Deepseek has had real innovations” but that the IA industry has become more efficient and also dropped prices.
When the cost of using the deployed AI models (inference) decreases, “it means that people consume more and there will be more written applications,” said Nadella. “This type of optimization means that AI will be much more omnipresent.”
“Therefore, for a hyperscaller like us, a PC platform supplier like us, it’s good news for me,” said Nadella.