Google parent Alphabet (GOOGL) reported fourth-quarter earnings that toppedཧ analysts' estimates, but its cloud revenue came in short, sending shares lower in✱ extended trading Tuesday. 

The tech giant saw revenue grow 12% year-over-year to $96.47 billion, roughly in line with the analyst consensus compiled by Visible Alpha. Alphabet’s earnings of $26.54 billion, or $2.15 per share, rose from $20.69 billion, or $1.64 per share, a year earlier and beat projections. 

However, Google Cloud's 30% revenue growth to $11.96 billion missed expectations, as well as Google's Search & Other segment revenue at $54.03 billion.

Alphabet♚ To Spen𒐪d $75 Billion To Support AI Capacity

Alphabet CEO Sundar Pichai said the company expects to invest about $75 billion in 澳洲幸运5官方开奖结果体彩网:capital expenditures in 2025 "to accelerate our progress." CFO Anat Ashkenazi added that $16 billion to $18 billion of that investment is expected to come in the first quarter, with a majority of the funds set to go toward expanding infrastructure, including servers and data centers.

Pichai said Google Cloud customers are consuming more than eight times the c🉐ompute capacity they did a year and a half ago, and that investments are needed to keep up with demand. 

Pichai also gave a shoutout to AI chipmaker Nvidia (NVDA) on the company's earnings call, after announcin🃏g it⛎s first customer running on Nvidia’s Blackwell platform last week. 

The results come after the emergence of a sophisticated, cost-efficient AI model from 澳洲幸运5官方开奖结果体彩网:Chinese startup DeepSeek raised concerns about the competitiveness of U.𝓡S. firms and their spending on the emerging tech.✱

Chinese regulators also launched an 澳洲幸运5官方开奖结果体彩网:antitrust probe into Google this week in response to new U.S. tariffs going into effect. Most Google services, including Gmail and YouTube, alr𒊎eady are banned in China.

Alphabet's Class A shares fell nearly 8% in extended trading following the company's earnings call. The stock closed at a record high of $206.38 Tuesday and has added about 43% over the past 12 months.

UPDATE—Feb. 4, 2025: This article has been updated since it was first published to include additional information and reflect more recent share prices.