Elon Musk<\/a> said on the earnings call on Wednesday.<\/p>\n![\"Alphabet](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/07\/108338934-1p.jpg\")
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Musk talked up the company’s future initiatives around semiconductor production and Optimus, Tesla’s humanoid robot, as it highlighted where the spending was going. Tesla is “installing the first-generation lines for Optimus,” and will “start production soon,” the company\u00a0said in its earnings presentation.<\/p>\n
Alphabet’s CEO said the spending increase “is primarily due to an acceleration in the delivery of capacity to meet growing demand.” The tech giant has maintained that it does not have enough computing capacity to meet the AI demand that it is seeing.<\/p>\n
“Investors appear to be focusing on the sharp rise in capital expenditure, alongside a weaker margin outlook, while continued delays to Gemini 3.5 Pro and a lack of standout product releases have raised questions about whether Alphabet’s AI investments are yet translating into a clear competitive advantage,” Ben Barringer, head of technology research at Quilter Cheviot, told CNBC.<\/p>\n
Spending figures at both companies were offset by some bright spots. <\/p>\n
There were signs that some of Google’s investments were beginning to pay off. Google’s cloud revenue jumped 82% to $24.8 billion, beating forecasts. <\/p>\n
“This is one of the strongest revenue growth quarters that Alphabet has had in five years, and Alphabet is a really great barometer for this whole AI wave,” Alison\u00a0Porter, portfolio manager at Janus Henderson, told CNBC’s “Squawk Box Europe” on Thursday.<\/p>\n
Porter pointed to the strong revenue growth of Google Cloud as well as the jump in the division’s operating margin to 35.6% in the second quarter from 20.7% in the same period last year as proof of the company’s strong performance as a result of its investments.<\/p>\n
“We think this look is … very encouraging for overall AI capex and also for the returns that these platforms are seeing on that spend,” Porter said.<\/p>\n
At Tesla, the company’s core automotive business brought in $20.52 billion in revenue, up 23% year-on-year.<\/p>\n
\u2014 CNBC’s Lora Kolodny and MacKenzie Sigalos contributed to this report.<\/p>\n
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Shares of Alphabet and Tesla fell in premarket trading on Thursday after both firms signalled increased AI spending,…\n","protected":false},"author":2,"featured_media":564251,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,3490,5025,218,219,964,122,222,605,61,206,139897,60,123,135086,80,15503],"class_list":["post-564250","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alphabet-class-a","tag-alphabet-class-c","tag-artificial-intelligence","tag-artificialintelligence","tag-breaking-news-markets","tag-business-news","tag-earnings","tag-elon-musk","tag-ie","tag-internet","tag-intl-premarket-movers","tag-ireland","tag-markets","tag-pre-markets","tag-technology","tag-tesla-inc"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/564250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=564250"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/564250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/564251"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=564250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=564250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=564250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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