But all that AI is coming at a massive cost to Alphabet, which disclosed that it has committed to more than $1 trillion worth of multiyear spending agreements to fund the infrastructure, energy and leases required to run AI systems.
This is the problem right here: lack of faith. Google should announce $3 trillion in new AI commitments. Stock market are just a bunch of pussies that can’t clap hard enough for Tinker Bell to live.
Did you see the part where their revenue was down because fewer ads were being served because people are using their stupid AI summaries instead of searches? God, these people are short-sighted.
They’re betting that they can slowly start incorporating ads into those AI summaries.
EDIT: However that’s a losing bet as anyone can get a local model that can do a search like that without the enshittified model.
The common person is not tech literate enough for that.
On my end, I would love to do that but 1 ram is 10 billion dollars and I was a fool who didn’t upgrade to 32g when I could.
It’ll come back down in a few years. Chinese ram is pretty good too I hear
There’s also been a multiyear trend of dropping ad sales overall, especially with higher quality companies. Meaning they need far more impressions of the same buyers to make ends meet.
They are all experiencing a recession, hidden by the Ai bubble, so the only people buying ads are lower quality scam companies, gambling and other bullshit. These are less sustainable clients that can vanish at any moment.
Ads targetting people who cant afford to buy things are also not super viable.
I know the article is about google, but the bit about caterpillar is insane.
The bleeding even spread beyond the tech sector, as shares of the construction equipment giant Caterpillar — a key supplier of the machines required to build data centers — plunged 9.2% on Thursday. Caterpillar’s recent earnings report revealed that its revenue beat Wall Street expectations but by less than many traders had hoped.
So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.
What is even going on at this point?
Welcome to stock market, where the stock price is based on expectation instead of how well the company actually doing. There could be profit but if the profit is slightly less than last quarter, the day traders all gonna throw their baby tantrum.
Not to mention as much as this stock fall is “a big deal” it’s just fallen to where it was back in March. And of course that March fall was also a singular moment, because before that were just back to October 2025.
So sure, they’ve lost a year of stock growth, and in a world of “line must go up” falling back a year of stock growth isn’t nothing… But it’s also far from the end of the world.
Which is all to say, Google’s fine in the long run. Day traders don’t look at the long run, so for the moment “panic”, but ultimately it’ll pass.
Welcome to the stock market, which functions off the unsustainable concept of infinite growth
And that’s fine. It incentivizes some weird behavior, but there can be rational strategies that work in that environment, not only the deranged herd behavior that we see during speculative bubbles such as this one. And there are even worse methods of allocating money to investment opportunities (for example, politicians picking winners).
The stock market is just rich people’s feelings
Company I worked at a couple years back not only beat their projected earnings, but made record profits highest quarter ever. Stock prices dropped by a third
They are trading at big growth multiples. So if the rate of growth slows then it gets repriced. Their assumption was double digit growth rate, which is one helluva bet.
This exact thing has been driving me crazy for like a decade now. Say a company makes $1 billion in profit one year, and the next year isn’t as good but they make $800 million. Still a very profitable company, but because it was less then the year before it’s considered horrible and the company is basically going out of business.
They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing, which is ass backwards. I don’t know if it was in their report but they also supposedly don’t have a strategy for making their customers pay for AI use.
They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing
Not but, it’s and
Their ad revenue plummeted, because the AI summary costs money each search and also leads to fewer clicks (because people often take the AI answer), meaning Google ads, the core of their business, are not being seen on web sites
Also, they continue to invest crazy amounts in AI data centers (despite being significantly behind in LLM quality)
But that’s really just a piece of the puzzle, the simple answer is they are not only going all in on AI, they’re also destroying the one massive profit center that keeps all their other projects afloat
You love to see it
Absolutely, thanks! I got this (crucial?) detail missed, that the two aren’t independent but AI overviews cannibalizing traditional ads both losing money.
You got it, that’s exactly right
So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.
That’s why I always say that big shot, institutional investors are a bunch of cunts. They always think in short term. That’s why I am in favour of half year earnings report so that there is less pressure for companies to think in three months time.
This also points out how the AI bubble is affecting the economy far beyond the tech sector.
Construction equipment used to be used for other things, not just building datacenters. But, since the start of the AI bubble, almost everything else has slowed down because they’re dedicating so much construction equipment and workers towards building datacenters.
https://futurism.com/future-society/data-center-spending-ai-bubble-construction
In just 1 year, construction work on DCs has gone up by 64.5%. And, that’s from 2025 to 2026. It’s not like it was at a standstill in 2025. Meanwhile, residential construction is down significantly. And, there has been a 25% cut in construction related to manufacturing.
Buyers are extremely edgy because they know we are teetering on the edge of a potential collapse.
You should see NVIDIA stock after every earnings. They beat, by a lot. Stock goes down. Every fucking time. Stock market runs on vibes now.
Mass manipulation. I wish I were smart enough and had enough to bribe the right people to be in on the looting.
Amaze amaze amaze! ❤️❤️❤️
I for one look forward to the humorous Adam McKay movie explaining how we all lost all our pensions over this.
Wonder who will be in the bathtub explaining it this time
Not Patrick Stewart
What the fuck, dude.
Behave
Too soon!
Live, laugh toaster bath.
that’ll be when they make some special exceptions to IPO openAI/anthrop8c into sp500 from the start like they did woth spaceX.
My car got gemini and now I cant get it to play tambourine man by bob dylan
You can’t do this to me on the day Patrick Stewart died!
Hey there Gemini man, play a song for me
I asked chatgpt, it said this is fine.
I asked my penis, she said start using the bitch. I said I beat you daily and she starts talking about ass and pussy and it’s like I might be the second coming but I ain’t no miracle worker, aight? Fucking get off my dick already, you fucking dick, amirite?
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anyone notice their search engine enshittify with dates? an advance search let you search between points in time, like between 2010 and 2012 specifically. you can’t do that anymore. other search parameters are gone. along with renaming lake ontario it’s the equivalent of history book burning.
You can still search between dates, but not from the advance search page directly. After you search, if you hit “Tools” it let’s you choose a date range.
Or just type the flag in. after:2020 before:2026
they did away with that around the same time they removed it from YouTube. probably because they knew people weren’t going to read/watch AI generated bullshit.
jokes on them, I still found ways to search YouTube between dates.
Can’t believe stealing all the Reddit comments didn’t make Gemini the smartest bot on the Internet!
Good thing they also sabotaged their ad revenue to do it!
OH NO!
Anyway…
Please, than this been a sign of the IA bubble bursting…
Yes, I’m sick of internal affairs having an over-inflated valuation also.
It’s a sign google is losing their audience. People can search for info via AI providers now, without ads, without Israeli malware, without 900 ad agencies tracking you
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They speak Spanish, I’ll bet. Intelligencia Artificial.
I like it because it’s pronounced like a donkey: “IA” -> EeeAhhh!
Mi burrito! 🫏
Brazilian Portuguese actually, but you get close, inteligência artificial.
But it’s not a bubble, right?
It clearly is a bubble. But that doesn’t automatically mean AI is useless. The .com bubble was the biggest of them all, but lots of companies survived and business largely moved online. The data centres (which nobody likes but which is clearly providing some value to somebody, whether we like it or not) don’t disappear overnight if the bubble bursts.
The AI bubble is bigger than the dotcom bubble. It’s bigger than the subprime bubble. We are still living in the wreckage of that bubble, 18 years later.
Never said it wasn’t lol. But the way that narcissitic capitalists are rewarded by capitalism is why the implementation is the issue.
The only value being provided are to the billionaires who continue to get more wealthy to a point in which they literally control politics without being elected.
And just like the 08 recession they’re going to try their damndest for the only form of socialism they support: corporate socialism. Privatize the gains, and in this case, socialize the losses. They’re going to seek bailouts so that when their circular financing crumbles they drift down on golden parachutes while our tax dollars fund them, the burning of our atmosphere, the contamination of our air, our drinking water, and our very minds as their sycophancy psychosis machines run rampant and delude people into entirely false realities.
Motherfuckers socialized their own sycophancy, they insulated themselves with greedy yes men who just want their money. They then built machines that do the same to us, isolating us and agreeing with every idea we have.
Maybe they should fire couple more stuff.
Intel is down, AMD is down, SpaceX is going down slowly. Amazon dropped like a rock at the same time as Intel and AMD, but they seemed to have climbed out of the ditch somewhat, but as of yet still not up to where they were before 4pm CET yesterday.
Nvidia is also down, but not by much. In fact, a lot of America is down in stocks at the moment, while Europe is going up in stocks.
Every big financial crisis has a few pump and dumps along the road before the real sell-off starts, which is all in the hands of the actual elite.
Intel is down, AMD is down, SpaceX is going down slowly.
Off of stratospheric highs. They’re now merely overvalued, rather than extremely overvalued
Their worst day so far.
it’ll be back next week; they’re a blue chip and will probably start injecting ads into ai anyway
