Google's $75 Billion AI Investment Plans Spark Investor Concerns

Recent earnings reports from Alphabet, Google's parent company, reveal a mixed outlook as the tech giant grapples with declining growth in key segments like YouTube and search services, raising concerns about its future in the rapidly evolving AI market. Despite achieving a 28% increase in profits during the last quarter, revenue growth in its AI-centric Google Cloud division fell short of expectations, leading to an 8% drop in stock price. Analysts suggest that Google faces tough competition from rivals like Microsoft, which are better positioned to capitalize on AI advancements. Meanwhile, former Google CEO Eric Schmidt warns of AI's potential societal impacts, emphasizing that AI technologies could be misused by demagogues and create unforeseen challenges for democracy. He highlights the accessibility of AI tools, which could empower both beneficial and malicious actors alike. As Google increases its AI investment to $75 billion in 2025, concerns persist about whether these expenditures will translate into meaningful revenue growth.