Google's AI chips boost Google Cloud revenue, CFO flags inventory
Business
Google's own AI chips, originally built for in-house projects, are now driving up Google Cloud's revenue.
But there's a catch: Alphabet is spending big on data centers to keep up, which is putting some real pressure on its cash flow.
CFO Anat Ashkenazi mentioned these AI systems are showing up in inventory and will mean some changes in how it handles money.
Alphabet shares fall nearly 11%
All this upfront spending has made investors a bit uneasy: Alphabet's stock dropped nearly 11% after news of rising costs and predictions of even more AI investment next year.
Still, these TPUs (the special chips) are bringing in solid revenue, and sales look set to keep growing as Alphabet lines up major deals with companies like Anthropic and possibly OpenAI.