Alphabet's Rapidly Growing $50 Billion Business Is a Huge Advantage in the AI Arms Race

Alphabet's Rapidly Growing $50 Billion Business Is a Huge Advantage in the AI Arms Race

Key PointsAlphabet's custom AI accelerator chips are seeing massive demand.On top of that, the payback period for deploying its TPU systems is extremely fast.That means cash returns should balloon over the next few years.10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has come under pressure lately as management pushes forward with its massive AI spending plans. Not only does it expect to spend around $200 billio…

Google Cloud Says AI Servers Pay Back in Under Two Years, Not Alphabet’s Entire Capex

Google Cloud has put a clock on its artificial-intelligence hardware: less than two years to recover the cost of AI servers in aggregate. That is the clearest return metric Alphabet has offered during a spending cycle approaching $200 billion, but it is narrower than the number circulating around the stock. At the Goldman Sachs Communacopia…