Google parent Alphabet’s shares plunge 12.6% as investors question returns from AI spending

Alphabet's shares have fallen by 12.6% after the company's latest financial report. This decline is largely due to investor concerns about the returns on Alphabet's significant spending on artificial intelligence (AI) technology. Despite a 25% increase in revenue, the company's infrastructure spending has reached $51 billion in the quarter, with a portion of this going towards AI development. This has led to worries about the impact on advertising revenue from AI-powered Search queries.

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Alphabet's quarterly infrastructure spending has crossed $51 billion, and lower advertising revenue from AI-powered Search queries is adding to investor concerns. The company's revenue growth of 25% is not enough to offset these concerns, leading to a plunge

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