Alphabet shares drop on higher AI spending, earnings miss

The company's shares dropped by more than ten percent, because its profit and ad income grew slowly. This meant it lost billions of dollars in market value, even though it spent much on AI.

Its profit after all costs fell by 25% from the year before. The company lost money from its investments, partly because of its shares in another company.

But its total income grew by 25% to a very large amount. Income from ads and its search business grew, but slower than before.

Google Cloud, which offers computer services to businesses, saw its income grow quickly. The company's own special AI chips helped this growth and are now sold to other companies.

Alphabet spent much more money on new equipment like data centers and AI chips. This big spending is for its long-term plans and to help grow its AI technology.