Google's Capital Expenditures Are Soaring
Alphabet is positioned to become the structural AI winner, with Gemini 2.5 Pro leading benchmarks and Gemini 3.0 showing early signs of a step change. GOOGL's AI integration across Search, Android, YouTube, and cloud services is driving user engagement, data scale, and enterprise demand for its full-stack AI solutions. The company's custom TPUs and expanding cloud business provide a competitive edge, with cloud revenue and backlog surging due to AI infrastructure demand.
BRK.B reshapes its portfolio, boosting Alphabet holdings while trimming Apple as part of a broader bid to reduce concentration risk.
Google is unleashing its Gemini 3 artificial intelligence model on its dominant search engine and other popular online services in the high-stakes battle to create technology that people can trust to enlighten them and manage tedious tasks.
Maybe more than other model releases, this one seems to have the attention of Google's competitors. Will it put the company at the top of the A.I.
Google announced Gemini 3, an upgraded artificial intelligence model, almost eight months after the company rolled out Gemini 2.5. The company said its latest suite of AI models will require users to do "less prompting" to get the desired results.
The new model could help the company leverage its built-in advantages of scale and profitability—if it can meet users' expectations.
Alphabet's stock has already doubled off its 2025 lows, but an analyst is still upbeat about Google's resilience in search and its growing presence in semiconductors.
Warren Buffett's Berkshire Hathaway (NYSE:BRK-B) just made a rather surprising bet on shares of AI titan Alphabet (NASDAQ:GOOG) last quarter.
The futures are trading lower for the fourth straight day as we start the week, following deep selling on Monday, especially in some of the big technology names, such as NVIDIA Corp.
The head of Google's parent company Alphabet warned that every company would be impacted if the AI bubble were to burst, in an interview to the BBC.
Google stock has surged 51% YTD, driven by strong earnings. However, concerns about AI-related capital expenditures (CAPEX) have been weighing in recent weeks. GOOG's massive AI CAPEX is pressuring free cash flow but should drive long-term growth, particularly in Google Cloud and AI-enhanced search.