{"id":45966,"topic":"ai","source":"Detroit Free Press","title":"Move over oil. AI leader Alphabet's spending sends investors running - Detroit Free Press","url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","url_hash":"5d55a6769d1e80535db507ba9bb2382040f344ac","author":"","summary":"<a href=\"https://news.google.com/rss/articles/CBMiwAFBVV95cUxNNTFnZFBIYzdiWEY5N2JuU2YtQVhFSmpPQV9KczFfVVlCV0NEeFFlbDNtU0wzWmZianp3NzIzbWdKNjJCNmdiSnJIQ2llVDJadTRsdy1DR0I1cDZvWThBbElmVjZPakFUcUYyaE15SDQxUnVhM0lBcThqcVIzLVEwUWxrM3FMWWpNSGs2azlwSTVkWkE5bW5OSXJOeHd4M1FLaTk5Y2VYWktUS25YXzg2S2h2T2NVRTV4UFNtTl9QZUE?oc=5\" target=\"_blank\">Move over oil. AI leader Alphabet's spending sends investors running</a>&nbsp;&nbsp;<font color=\"#6f6f6f\">Detroit Free Press</font>","content":"Move over oil. AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value.\n- Meanwhile, General Motors stock rises after it issues improved full-year guidance.\nMarkets were driven by two themes the week ending July 24: a renewed geopolitical risk premium and growing investor unease over the cost of the AI race.\nStarting with the political side of things, Brent crude climbed above $100 a barrel for the first time since May. The catalyst was a sharp escalation in the Middle East after Iran-backed Houthis attacked Saudi oil tankers in the Red Sea, while President Donald Trump said he was considering a \"massive attack\" against Iran.\nThe oil move rippled across asset classes. The two-year Treasury yield rose to 4.35%, its highest level since February 2025.\nMarkets now expect two Federal Reserve rate hikes over the next year, as traders priced in renewed inflation risks.\nNotably, there's a nonnegligible 35% probability of a hike at next week's FOMC meeting.\nAlphabet's AI bill scares investors\nAlphabet Inc. reminded investors that AI leadership comes at an enormous price.\nSecond-quarter capital expenditures surged to $44.9 billion, twice last year's level.\nThe management also lifted full-year spending guidance to $195 billion-$205 billion while signaling another increase in 2027.\nFree cash flow swung to a record negative $5.9 billion as AI infrastructure spending overwhelmed cash generation.\nThe result: a 7.1% selloff, Alphabet's worst day since May 2025, wiping nearly $300 billion from its market value.\nThe reaction reinforced a theme that's increasingly dominating Big Tech: Wall Street is becoming concerned about how much hyperscalers must spend to stay competitive in AI.\nTesla's AI spending hits a wall\nTesla Inc. suffered an even harsher verdict.\nShares plunged 20% for the week after quarterly earnings badly missed expectations. Adjusted EPS came in at $0.33 versus $0.53 expected, while operating margin collapsed to just 1.4%.\nLike Alphabet, Tesla's biggest story wasn't weak sales, it was spending.\nCapital expenditures jumped 142% year over year to $5.8 billion, largely tied to AI, robotics and autonomous driving, pushing free cash flow $1.1 billion into negative territory.\nDefense and Detroit buck the trend\nWhile AI spenders stumbled, defense stocks thrived.\nLockheed Martin Corp. jumped 10.6% after reporting a record backlog of $230.4 billion, supported by a $35 billion THAAD mobile missile defense contract and surging missile demand. RTX Corp. gained 7.7% after another beat-and-raise quarter, with both companies benefiting from expectations of higher U.S. defense spending.\nGeneral Motors Co. also stood out, rising roughly 10% for the week after delivering its 16th consecutive earnings beat and raising full-year guidance.\nBenzinga is a financial news and data company headquartered in Detroit.","image_url":"https://www.gannett-cdn.com/authoring/authoring-images/2026/07/24/PDTF/91038571007-20260723-t-012410-z-339378462-rc-2-iclasze-4-l-rtrmadp-3-alphabetresultsai.jpg?auto=webp&crop=2815,1584,x0,y0&format=pjpg&width=1200","lang":"en","published_at":"2026-07-25T11:01:00+00:00","fetched_at":"2026-07-25T12:15:08+00:00","status":"read","starred":0,"extract_state":"ok","summary_auto":"AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value. - Meanwhile, General Motors stock rises after it issues improved full-year guidance.","cluster_id":null,"extract_retries":0,"extract_error":null,"contract_version":"news_item.v1","format_contract_version":"news_item_formats.v1","dedup_url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2945 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2945,"summary_length":249,"usable_text_length":2945,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2945,"summary_length":249}},"news_item":{"id":45966,"canonical_url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","source_url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","title":"Move over oil. AI leader Alphabet's spending sends investors running - Detroit Free Press","source_name":"Detroit Free Press","author":null,"published_at":"2026-07-25T11:01:00+00:00","locale":"en","topic":"ai","tags":[],"rss_summary":"<a href=\"https://news.google.com/rss/articles/CBMiwAFBVV95cUxNNTFnZFBIYzdiWEY5N2JuU2YtQVhFSmpPQV9KczFfVVlCV0NEeFFlbDNtU0wzWmZianp3NzIzbWdKNjJCNmdiSnJIQ2llVDJadTRsdy1DR0I1cDZvWThBbElmVjZPakFUcUYyaE15SDQxUnVhM0lBcThqcVIzLVEwUWxrM3FMWWpNSGs2azlwSTVkWkE5bW5OSXJOeHd4M1FLaTk5Y2VYWktUS25YXzg2S2h2T2NVRTV4UFNtTl9QZUE?oc=5\" target=\"_blank\">Move over oil. AI leader Alphabet's spending sends investors running</a>&nbsp;&nbsp;<font color=\"#6f6f6f\">Detroit Free Press</font>","full_text":"Move over oil. AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value.\n- Meanwhile, General Motors stock rises after it issues improved full-year guidance.\nMarkets were driven by two themes the week ending July 24: a renewed geopolitical risk premium and growing investor unease over the cost of the AI race.\nStarting with the political side of things, Brent crude climbed above $100 a barrel for the first time since May. The catalyst was a sharp escalation in the Middle East after Iran-backed Houthis attacked Saudi oil tankers in the Red Sea, while President Donald Trump said he was considering a \"massive attack\" against Iran.\nThe oil move rippled across asset classes. The two-year Treasury yield rose to 4.35%, its highest level since February 2025.\nMarkets now expect two Federal Reserve rate hikes over the next year, as traders priced in renewed inflation risks.\nNotably, there's a nonnegligible 35% probability of a hike at next week's FOMC meeting.\nAlphabet's AI bill scares investors\nAlphabet Inc. reminded investors that AI leadership comes at an enormous price.\nSecond-quarter capital expenditures surged to $44.9 billion, twice last year's level.\nThe management also lifted full-year spending guidance to $195 billion-$205 billion while signaling another increase in 2027.\nFree cash flow swung to a record negative $5.9 billion as AI infrastructure spending overwhelmed cash generation.\nThe result: a 7.1% selloff, Alphabet's worst day since May 2025, wiping nearly $300 billion from its market value.\nThe reaction reinforced a theme that's increasingly dominating Big Tech: Wall Street is becoming concerned about how much hyperscalers must spend to stay competitive in AI.\nTesla's AI spending hits a wall\nTesla Inc. suffered an even harsher verdict.\nShares plunged 20% for the week after quarterly earnings badly missed expectations. Adjusted EPS came in at $0.33 versus $0.53 expected, while operating margin collapsed to just 1.4%.\nLike Alphabet, Tesla's biggest story wasn't weak sales, it was spending.\nCapital expenditures jumped 142% year over year to $5.8 billion, largely tied to AI, robotics and autonomous driving, pushing free cash flow $1.1 billion into negative territory.\nDefense and Detroit buck the trend\nWhile AI spenders stumbled, defense stocks thrived.\nLockheed Martin Corp. jumped 10.6% after reporting a record backlog of $230.4 billion, supported by a $35 billion THAAD mobile missile defense contract and surging missile demand. RTX Corp. gained 7.7% after another beat-and-raise quarter, with both companies benefiting from expectations of higher U.S. defense spending.\nGeneral Motors Co. also stood out, rising roughly 10% for the week after delivering its 16th consecutive earnings beat and raising full-year guidance.\nBenzinga is a financial news and data company headquartered in Detroit.","excerpt":"AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value. - Meanwhile, General Motors stock rises after it issues improved full-year guidance.","extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 2945 characters.","diagnostics_url":"/api/diagnose?url=https%3A//eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2945 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2945,"summary_length":249,"usable_text_length":2945,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2945,"summary_length":249}}},"display_formats":["compact","card","full","digest_section","json"]},"daily_stack_record":{"title":"Move over oil. AI leader Alphabet's spending sends investors running - Detroit Free Press","url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","summary":"AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value. - Meanwhile, General Motors stock rises after it issues improved full-year guidance.","source":"Detroit Free Press","date":"2026-07-25T11:01:00+00:00","content":"Move over oil. AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value.\n- Meanwhile, General Motors stock rises after it issues improved full-year guidance.\nMarkets were driven by two themes the week ending July 24: a renewed geopolitical risk premium and growing investor unease over the cost of the AI race.\nStarting with the political side of things, Brent crude climbed above $100 a barrel for the first time since May. The catalyst was a sharp escalation in the Middle East after Iran-backed Houthis attacked Saudi oil tankers in the Red Sea, while President Donald Trump said he was considering a \"massive attack\" against Iran.\nThe oil move rippled across asset classes. The two-year Treasury yield rose to 4.35%, its highest level since February 2025.\nMarkets now expect two Federal Reserve rate hikes over the next year, as traders priced in renewed inflation risks.\nNotably, there's a nonnegligible 35% probability of a hike at next week's FOMC meeting.\nAlphabet's AI bill scares investors\nAlphabet Inc. reminded investors that AI leadership comes at an enormous price.\nSecond-quarter capital expenditures surged to $44.9 billion, twice last year's level.\nThe management also lifted full-year spending guidance to $195 billion-$205 billion while signaling another increase in 2027.\nFree cash flow swung to a record negative $5.9 billion as AI infrastructure spending overwhelmed cash generation.\nThe result: a 7.1% selloff, Alphabet's worst day since May 2025, wiping nearly $300 billion from its market value.\nThe reaction reinforced a theme that's increasingly dominating Big Tech: Wall Street is becoming concerned about how much hyperscalers must spend to stay competitive in AI.\nTesla's AI spending hits a wall\nTesla Inc. suffered an even harsher verdict.\nShares plunged 20% for the week after quarterly earnings badly missed expectations. Adjusted EPS came in at $0.33 versus $0.53 expected, while operating margin collapsed to just 1.4%.\nLike Alphabet, Tesla's biggest story wasn't weak sales, it was spending.\nCapital expenditures jumped 142% year over year to $5.8 billion, largely tied to AI, robotics and autonomous driving, pushing free cash flow $1.1 billion into negative territory.\nDefense and Detroit buck the trend\nWhile AI spenders stumbled, defense stocks thrived.\nLockheed Martin Corp. jumped 10.6% after reporting a record backlog of $230.4 billion, supported by a $35 billion THAAD mobile missile defense contract and surging missile demand. 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AI leader Alphabet's spending sends investors running - Detroit Free Press","url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","source":"Detroit Free Press","author":null,"published_at":"2026-07-25T11:01:00+00:00","locale":"en","topic":"ai","tags":[],"excerpt":"AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value. - Meanwhile, General Motors stock rises after it issues improved full-year guidance.","full_text":"Move over oil. AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value.\n- Meanwhile, General Motors stock rises after it issues improved full-year guidance.\nMarkets were driven by two themes the week ending July 24: a renewed geopolitical risk premium and growing investor unease over the cost of the AI race.\nStarting with the political side of things, Brent crude climbed above $100 a barrel for the first time since May. The catalyst was a sharp escalation in the Middle East after Iran-backed Houthis attacked Saudi oil tankers in the Red Sea, while President Donald Trump said he was considering a \"massive attack\" against Iran.\nThe oil move rippled across asset classes. The two-year Treasury yield rose to 4.35%, its highest level since February 2025.\nMarkets now expect two Federal Reserve rate hikes over the next year, as traders priced in renewed inflation risks.\nNotably, there's a nonnegligible 35% probability of a hike at next week's FOMC meeting.\nAlphabet's AI bill scares investors\nAlphabet Inc. reminded investors that AI leadership comes at an enormous price.\nSecond-quarter capital expenditures surged to $44.9 billion, twice last year's level.\nThe management also lifted full-year spending guidance to $195 billion-$205 billion while signaling another increase in 2027.\nFree cash flow swung to a record negative $5.9 billion as AI infrastructure spending overwhelmed cash generation.\nThe result: a 7.1% selloff, Alphabet's worst day since May 2025, wiping nearly $300 billion from its market value.\nThe reaction reinforced a theme that's increasingly dominating Big Tech: Wall Street is becoming concerned about how much hyperscalers must spend to stay competitive in AI.\nTesla's AI spending hits a wall\nTesla Inc. suffered an even harsher verdict.\nShares plunged 20% for the week after quarterly earnings badly missed expectations. Adjusted EPS came in at $0.33 versus $0.53 expected, while operating margin collapsed to just 1.4%.\nLike Alphabet, Tesla's biggest story wasn't weak sales, it was spending.\nCapital expenditures jumped 142% year over year to $5.8 billion, largely tied to AI, robotics and autonomous driving, pushing free cash flow $1.1 billion into negative territory.\nDefense and Detroit buck the trend\nWhile AI spenders stumbled, defense stocks thrived.\nLockheed Martin Corp. jumped 10.6% after reporting a record backlog of $230.4 billion, supported by a $35 billion THAAD mobile missile defense contract and surging missile demand. RTX Corp. gained 7.7% after another beat-and-raise quarter, with both companies benefiting from expectations of higher U.S. defense spending.\nGeneral Motors Co. also stood out, rising roughly 10% for the week after delivering its 16th consecutive earnings beat and raising full-year guidance.\nBenzinga is a financial news and data company headquartered in Detroit.","reading_time_min":2,"extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 2945 characters.","diagnostics_url":"/api/diagnose?url=https%3A//eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2945 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2945,"summary_length":249,"usable_text_length":2945,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2945,"summary_length":249}}},"quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2945 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2945,"summary_length":249,"usable_text_length":2945,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2945,"summary_length":249}},"actions":{"read":"/item/45966","export_markdown":"/api/items/45966/export?format=markdown","export_json":"/api/items/45966/export?format=json","diagnose":"/api/diagnose?url=https%3A//eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/"}},"digest":{"id":45966,"title":"Move over oil. 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AI leader Alphabet's spending sends investors running - Detroit Free Press","url":"https://eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","summary":"AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value. - Meanwhile, General Motors stock rises after it issues improved full-year guidance.","source":"Detroit Free Press","date":"2026-07-25T11:01:00+00:00","content":"Move over oil. AI leader Alphabet's spending sends investors running\n- Alphabet saw a 7.1% selloff, its worst day since May 2025, wiping nearly $300 billion from its market value.\n- Meanwhile, General Motors stock rises after it issues improved full-year guidance.\nMarkets were driven by two themes the week ending July 24: a renewed geopolitical risk premium and growing investor unease over the cost of the AI race.\nStarting with the political side of things, Brent crude climbed above $100 a barrel for the first time since May. The catalyst was a sharp escalation in the Middle East after Iran-backed Houthis attacked Saudi oil tankers in the Red Sea, while President Donald Trump said he was considering a \"massive attack\" against Iran.\nThe oil move rippled across asset classes. The two-year Treasury yield rose to 4.35%, its highest level since February 2025.\nMarkets now expect two Federal Reserve rate hikes over the next year, as traders priced in renewed inflation risks.\nNotably, there's a nonnegligible 35% probability of a hike at next week's FOMC meeting.\nAlphabet's AI bill scares investors\nAlphabet Inc. reminded investors that AI leadership comes at an enormous price.\nSecond-quarter capital expenditures surged to $44.9 billion, twice last year's level.\nThe management also lifted full-year spending guidance to $195 billion-$205 billion while signaling another increase in 2027.\nFree cash flow swung to a record negative $5.9 billion as AI infrastructure spending overwhelmed cash generation.\nThe result: a 7.1% selloff, Alphabet's worst day since May 2025, wiping nearly $300 billion from its market value.\nThe reaction reinforced a theme that's increasingly dominating Big Tech: Wall Street is becoming concerned about how much hyperscalers must spend to stay competitive in AI.\nTesla's AI spending hits a wall\nTesla Inc. suffered an even harsher verdict.\nShares plunged 20% for the week after quarterly earnings badly missed expectations. Adjusted EPS came in at $0.33 versus $0.53 expected, while operating margin collapsed to just 1.4%.\nLike Alphabet, Tesla's biggest story wasn't weak sales, it was spending.\nCapital expenditures jumped 142% year over year to $5.8 billion, largely tied to AI, robotics and autonomous driving, pushing free cash flow $1.1 billion into negative territory.\nDefense and Detroit buck the trend\nWhile AI spenders stumbled, defense stocks thrived.\nLockheed Martin Corp. jumped 10.6% after reporting a record backlog of $230.4 billion, supported by a $35 billion THAAD mobile missile defense contract and surging missile demand. RTX Corp. gained 7.7% after another beat-and-raise quarter, with both companies benefiting from expectations of higher U.S. defense spending.\nGeneral Motors Co. also stood out, rising roughly 10% for the week after delivering its 16th consecutive earnings beat and raising full-year guidance.\nBenzinga is a financial news and data company headquartered in Detroit.","confidence":0.9,"diagnostics_url":"/api/diagnose?url=https%3A//eu.freep.com/story/money/business/2026/07/25/ai-alphabets-expenditures-surge-making-investors-nervous/91038016007/","quality_bucket":"high","failure_kind":"none","retryable":false,"quality_reason":"High confidence: full text extraction produced 2945 characters.","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 2945 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":2945,"summary_length":249,"usable_text_length":2945,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":2945,"summary_length":249}},"tags":[],"format_contract_version":"news_item_formats.v1"}}}