Melissa Otto, head of research at S&P Global Visible Alpha, said that the performance of Alphabet and Microsoft can be said to be quite different. Microsoft has shown steady and disciplined growth this season, yet Google is spending a lot of cash, and its core business performance falls short of expectations. This may raise questions from investors about whether artificial intelligence is threatening Google's core search business. Jeremy Saltzberg, vice president and senior investment officer of the investment agency Check Capital, defended Google's huge investment, saying that today's Google is no longer the same as the past. Under the competition between OpenAI and Anthropic, Google must invest on a large scale to maintain competitiveness. This is a game belonging to the giants. For investors, however, competitiveness has been translated into a more accurate standard of cash flow. This has also led to contradictions. Without investment, the expansion of computing power and model iteration will be affected, thereby weakening the existing advantages of the giants; however, if capital consumption is not controlled, then investors will be disappointed, thus making it more difficult for the company to finance in the capital market. Technology analysts pointed out that companies that have invested heavily in building artificial intelligence infrastructure need to shift to controlling expenses, and layoffs may be one of the countermeasures.

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