Alphabet Shares Fall 13% on $180B AI Capex While Cloud Revenue Jumps 63%
GOOG•Alphabet’s shares have slid 13% over the past month as investors weighed $180–190 billion in AI-related capital spending and key talent departures. Google Cloud revenue rose 63% YoY to $20 billion while generative AI sales climbed nearly 800%, even though compute constraints forced a limit on Meta’s Gemini access.
1. Shares Slide 13% on AI Cost Concerns
Investors have driven Alphabet’s share price down 13% over the last month amid expectations of $180–190 billion in AI-focused capital expenditures this year and the departure of several key AI researchers and engineers.
2. Cloud Revenue Soars 63% to $20B
Google Cloud reported first-quarter revenue of $20 billion, a 63% year-over-year increase, while sales of generative AI products surged nearly 800%, underscoring strong returns on AI investments.
3. Compute Bottlenecks Force Gemini Limits
Persistent computing power shortages have compelled Alphabet to cap Meta’s use of its Gemini AI models, delaying Meta’s internal AI projects and contributing to a doubling of Google Cloud’s service backlog.
