Alphabet’s AI investments boost cloud sales, lifts maturing ad business

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Perceived as slow to catch up with Big Tech rival Microsoft in the AI race, Google has been beefing up its Gemini AI chatbot and improving its AI-powered Search

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Alphabet shares rose nearly 6% in after-market trading on Tuesday. Shares of Amazon and Microsoft, the top cloud companies, were up about 1% after hours. .Its new chief financial officer, Anat Ashkenazi, fielding her first analyst call, said Alphabet’s capital expenditures in 2025 would be higher than this year.

Google’s long-established dominance of the digital ad market is under threat from Amazon and TikTok, which have become popular with advertisers looking to tap a ready pool of buyers. Its Search business is also facing scrutiny from regulators seeking to break up the company. Google has rolled out ads in AI Overviews, which use generative AI to summarize content from a range of sources and display concise results for search queries.

Social media company Snap, which also depends on advertising, posted good news for shareholders, topping Wall Street targets for quarterly revenue and user growth, sending shares up 6% in after-hours trading.

 

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