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Alphabet's Gemini delay, spending worries loom over earnings
['Deborah Mary Sophia', 'Rashika Singh', 'July', 'Min Read']
Yahoo Finance
The setback has raised concerns as Chinese open-source models increasingly challenge top U.S. labs for customers amid growing worries about steep AI bills that have also fanned fears that Big Tech could be over-building capacity.
The company has also lost high-profile employees, including Gemini co-lead Noam Shazeer and Nobel laureate John Jumper, a key Google DeepMind executive, to rivals.
Overall, Alphabet shares remain nearly 13% higher for the year, making it the second-best performer among the Mag 7 group.
Analysts expect the company's second-quarter revenue growth to ease only slightly from the first three months of 2026, as the cloud business drives results.
The cloud business has benefited from growing deals for Google's custom AI chip business, including multi-billion-dollar agreements with Meta Platforms and Anthropic.