The managing director of UBS Wealth Management said market opportunities that were once available through e-commerce are now being seized by AI.
The rise of artificial intelligence remains a big focus for investors at Google and other tech giants, as emerging technologies reshape the tech world and transform the business of search, cloud, and advertising. There is a price involved.
Shares in Google’s parent company Alphabet fell more than 7% on Wednesday, a day after the company reported quarterly results. Despite beating expectations on a number of key metrics, the company said its capital spending will surge in 2024 as it continues to invest in AI to improve its services.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Alphabet Co., Ltd. | 140.10 | -11.36 | -7.50% | |
“We remain committed to investing in AI opportunities across Google DeepMind, Google Services, and Google Cloud,” Ruth Porat, the tech giant’s chief financial officer, told FOX Business’ Susan Porat. told Lee. “Capex increased to $11 billion in the fourth quarter, most of which was in our technology infrastructure.”
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There are questions about how AI will impact Google’s advertising business. (Jonathan Ra/Nulfoto/Getty Images)
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There are serious questions about how AI will impact Google’s advertising business. Advertising remains a major driver for Alphabet, accounting for more than 50% of total revenue. YouTube’s ad revenue increased 16% year over year, but overall ad spending is down as advertisers cut back on spending.
Adding to selling pressure, Alphabet’s fourth-quarter advertising revenue rose to $65.5 billion from $59 billion a year earlier, slightly below analysts’ expectations. Stocks are down slightly this year, compared with a modest 1% gain in the Nasdaq Composite Index.
Ruth Porat, Google and Alphabet CFO (Google)
But Porat said evolving AI technology could contribute to the success of Alphabet’s overall services, including cloud computing, which earned its first-ever quarterly profit in 2023.
“These results reflect the breadth of the industry as a whole, with an increasing contribution from AI,” Porat said. “These are obviously unusual times.”
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Google plans to release its most advanced generative AI model, Gemini Ultra, later this year.
