OREANDA-NEWS  Quotes from Alphabet (the holding company that manages Google Inc and its subsidiaries) fell by more than 9 percent in over-the-counter trading amid the publication by the tech giant of data on a sharp increase in costs due to the allocation of resources for the development of artificial intelligence. This is reported by Reuters.

The third-quarter financial statements, released after the close of trading in the United States on October 28, disappointed investors, increasing their concerns that Google, despite all efforts and investments of hundreds of billions of dollars, is losing ground in relation to competitors in the AI race.

While analysts expected Alphabet to approach the break-even point, the company reported negative cash flow of $9.1 billion. The indicator went into negative territory for the second quarter in a row, but Google's capital expenditures are still planned to increase significantly in 2027.

The fact that participants in the AI race are rapidly increasing debts in the expectation that investments will pay off in the future is considered one of the key signs of an inflating bubble in the market, which, according to some experts, may burst not even because of the situation within the industry, but because of excessive isolation in terms of funds, so as a significant part of its revenue is still provided by expenses within the AI ecosystem itself.

Earlier it became known that the total obligations of Microsoft, Amazon, Alphabet and a number of other American tech giants for renting data centers, which have not yet been taken into account in their financial indicators, exceed a trillion dollars.