Alphabet CFO says operating loss due to shared AI R&D costs, sees TPU sales rising

Alphabet's CFO says the operating loss this quarter was due to shared AI R&D costs, and expects TPU system sales to rise for Google Cloud. He said that given the supply-constrained environment, Alphabet began using third-party compute capacity at end of Q3 and will ramp in Q4, expecting near-term cloud margin headwinds. The company expects to recognize just over 55% of its backlog as revenue over 24 months, with 2026 capex unchanged.

Detected & updated continuously · Source: Nebula