Alphabet shares are falling despite beating on the top and bottom lines for the

June quarter slowing ad revenue also those increasing AI expenses worrying

investors are Steve Kovac bringing us the details for today's

check check so Steve what is the primary concern? Yeah so Sarah we learned yesterday

it is not cheap to be an artificial intelligence hyperscaler and the theme of

alphabet's earnings last night and we can expect that to continue next week

when the cloud leaders Amazon and Microsoft report their earnings as well.

Now much of the conference call-up for alphabet centered around how much Google

plans to spend in capital expenditures to meet that increasing AI demand.

That means AI startups and big names like meta and

entropic running their AI systems on Google's cloud.

CFO Ruth Porat said to expect Google to spend at least $12 billion each quarter

to build out more cloud AI capabilities.

Also CEO Sundar Pachai said it's a greater risk to underspend on Capex so he'd rather

overspend and use anything extra for other parts of the business.

Now to put all this cappex into context, Wall Street Journal notes that Google's

cap-ex for the first six months of last year were half as much as Google has already

spent so far this year.

For now, the spending is helping Google's Cloud Unit grow,

though.

It surpassed $10 billion in quarterly sales

for the very first time, and it had $1 billion

...