From CNBC, July 23:
- Both Tesla and Alphabet signaled higher spending as they invest in artificial intelligence.
- There were signs that some of Google’s investments were beginning to pay off, with its cloud revenue jumping 82% year-on-year in the second quarter.
- Meanwhile, Tesla is investing in areas from robotics to semiconductors.
Shares of Alphabet and Tesla fell in premarket trading on Thursday after both firms signalled increased AI spending, unnerving investors worried about the mounting costs of the artificial intelligence boom.
Alphabet shares were around 4% lower, while Tesla’s stock fell over 5% in premarket trading.
Both companies reported negative free cash flow for the second quarter on Wednesday. Alphabet raised its capital expenditure forecast for this year to $195 billion to $205 billion and warned of higher figures in 2027. The Google parent company’s previous projection was for capex between $180 billion and $190 billion.
Tesla, meanwhile said capex surged 142% year-on-year in the second quarter to $5.79 billion. The company said it expects more than $25 billion in capex this year....
....MUCH MORE
