Google’s parent company Alphabet on Tuesday released its third quarter earnings which beat analysts’ financial estimates despite heavy investment in artificial intelligence , but the company’s stock slid amid the performance of its cloud business. Google’s financial performance beat analysts’ estimates for profit and sales, but analysts noted Google Cloud revenue grew 22.5% to $8.
-related initiatives fueled a significant amount of capital expenditures in the quarter, with Alphabet reporting over $8 billion in spending that was "overwhelmingly" focused on technological infrastructure. Servers and data centers were the two largest investment areas, and the company’s AI initiatives span the cloud, search, YouTube, and smartphones. Porat said, "We’re seeing a lot of interest in all of the potential applications of AI across the customer base.