After Google parent Alphabet (GOOGL) reported 澳洲幸运5官方开奖结果体彩网:second-quarter results that beat analysts' expectations driven by Google Cloud and search strength, executives updated investors on the company's investments in 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI), outlook, and more.

CEO Sundar Pichai Says Risk of🍸 Underinvesting in AI Outweighs Overinvesting Fears

As big tech companies 澳洲幸运5官方开奖结果体彩网:boost💫 capital expenditures to invest in AI, raising concerns about higher costs, Alphabet CEO Sundar Pichai said "the risk of underinvesting is dr🐓amatically greater than the risk of overinvesting for us here."

Pichai said that in a situation where the company is overinvesting in AI, current investments directed at infrastructure solution♎s like data centers could also be used for other tasks.

The CEO added that "not investing to be at the front" of the AI race "definitely has much more significant downsides" for Alphabet.

Increa💖sed Search Usage and User Satisfaction꧂ With AI Overviews

Pichai also said the company is seeing "positive trends" from rolling out its 澳洲幸运5官方开奖结果体彩网:AI Overview tool, which summarizes the content from 🐭search at the top of the 💯page.

The company reported higher search usage and increased user satisfaction, with a rise in enga🌳gement from y💙ounger users driven by AI Overviews.

"AI Overviews continue to provide valuable options for people to take action and connect with businesses beyond AI Overviews" as "AI expands the types of queries [Google is] able to address and opens up powerful new ways to search," Pichai said.

Operating Margins To ♋Grow in Fiscal 2024, But Could Lag in Q3

Alphabet CFO Ruth Porat told investors that while the company expects to deliver operating margin expansion for the full fiscal 2024 year c♓ompared to 2023, the third quarter cou𝔍ld be negatively affected by depreciation and higher expenses, in part thanks to AI investments.

Increased spending associated with the timing of payments for Alphabet's continued AI investments and an upcoming Google Pixel launch were among the reasons cited for the rise in expenses.

Porat said that Alphabet's capital expenditures in the second quarter totaled $13 billion, and the company expects spending for the rest of 2024 to be around $12 billion quarterly.

Google Cloud Strength Supported by AI Offerings

Porat said generative AI offerings are "adding to the strength of the [cloud] business," which helped drive the company's better-than-expected results, with the majority of Google Cloud's top 100 customers using Alphabet's genAI solutions.

In the second quarter, Google Cloud's margin improved, which Porat said "reflects the revenue strength that [the cloud segment] delivers and all of the [company's] efficiency efforts."

Alphabet said it is prioritizing cost managemeܫnt as i♑t increases spending to invest in AI.

Shares of Alphabet were down roughly 1.6% at $178.80 in extended trading as of 6:40 p.m. ET Tuesday after the call.