Alphabet’s revenues jumped 14 per cent in the second quarter, with double-digit growth in advertising suggesting that artificial intelligence chatbots such as OpenAI’s ChatGPT had yet to make a dent in queries on its dominant search engine. Even stronger growth in its cloud computing business demonstrated the rapacious demand for computing and data services as Big Tech companies and start-ups race to build large language models and integrate AI into their businesses. Revenues rose to $84.
Alphabet’s capital expenditure rose again to $13bn, $1bn more than in the prior quarter and almost double the $6.9bn spent in the same period in 2023. That reflects a surge in investment in data centres, new chips to train and run AI models and development of its own suite of AI products, called Gemini. “We are in the early stage of a very transformative area. In tech when you are going through transitions like this . . .
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