Shares of Google's parent company have plummeted as investors are starting to get fed up with AI spending.

Alphabet, Google's parent company, lost nearly $500 billion in market value after disappointing earnings led to a significant drop in stock prices. Despite a 25% increase in quarterly revenue, the company's profit fell by 25%, and it reported a negative cash flow for only the second time since its IPO. The rising costs are primarily attributed to investments in AI, which are impacting its core advertising business. Similar trends were observed with Amazon, which also reported a significant drop in stock value due to high expenditures related to future business opportunities. Microsoft, however, managed to avoid a decline, as its results were viewed more favorably by analysts. The situation highlights growing tensions around the costs associated with AI transitions.