Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
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Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#2These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#3Keeping in mind that Alphabet is the only one of the Mag 7 stocks that has managed to outperform the S&P 500 in 2026.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#4Why does it raise alarm? Pretty sure all this spending was planned.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#5These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
The top will be when Jim Cramer loudly proclaims there is no problem at Oracle and gives a buy rating.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#6These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
> Everyone is in too deep to now admit that there’s a problem
I'm not sure how to square this with the dramatic improvement in LLM capabilities in the last 8-9 months. If anything, it makes the earlier investments look prescient?
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#7Keeping in mind that Alphabet is the only one of the Mag 7 stocks that has managed to outperform the S&P 500 in 2026.
No they haven't. SPY YTD: 9.40%, GOOG YTD: 3.33%
They have (massively) outperformed it in 2025 though.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#8These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
Cannot hear what you’re saying with all those alarms blaring non stop since a year. Someone should do something about them, maybe turn them off, I don’t know
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#9These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
> Everyone is in too deep to now admit that there’s a problem I'm not sure how to square this with the dramatic improvement in LLM capabilities in the last 8-9 months. If anything, it makes the earlier investments look prescient?
No, because the LLMs will keep getting more efficient and capable. Distillation and quantization will mean firms spending trillions on giant data centres are left holding the bag. I suspect Apple ends up laughing all the way to the bank.
Re: Alphabet's cash burn raises alarm for Big Tech as AI spending climbs
#10These alarms have been going off for a long time now. Everyone is already in too deep to admit that there’s a problem.
> Everyone is in too deep to now admit that there’s a problem I'm not sure how to square this with the dramatic improvement in LLM capabilities in the last 8-9 months. If anything, it makes the earlier investments look prescient?
The problem is that the dramatic improvement in capabilities is not translating to a dramatic increase in revenue.