Alphabet climbs as rivals burn cash on AI bets
Alphabet shares climbed as competitors grapple with the costly race to scale AI, signaling investor confidence in Google’s AI-driven profitability even as the broader tech sector wobbles.
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Palihapitiya warns AI costs could reach $10M/year as revenue stalls
Venture capitalist Chamath Palihapitiya says his software startup 8090 has seen AI expenses triple since November, potentially reaching about $10 million annually as revenues lag; costs come from AWS inference, Cursor, and Anthropic, prompting calls to switch models for lower bills and greater flexibility.
Dell's AI Investments Impact Profits but Boost Server Sales
Dell's shares fell over 17% after the company forecasted lower-than-expected current-quarter profit and indicated that higher costs for AI-optimized servers would reduce its annual margin. Despite a surge in demand for AI-capable products and a significant increase in shipments of AI-optimized servers, Dell's adjusted gross margin rate is expected to decline due to inflationary input costs and competitive pricing. The company raised its revenue forecast for fiscal 2025 but expects a decline in adjusted profit per share for the current quarter.
"Dell's Q1 Revenue Surges Amid AI Demand, Despite Stock Dip"
Dell's shares fell over 17% after the company forecasted lower-than-expected current-quarter profit and indicated that higher costs for AI-optimized servers would reduce annual margins. Despite a surge in demand for AI-capable products, competitive pricing and inflationary costs are impacting profitability. Dell's revenue and profit forecasts for fiscal 2025 were also adjusted, reflecting these challenges.