Alphabet Spends About 60 Cents of Every Technical Infrastructure Dollar on Servers. Nvidia's Biggest Customers Were Just Told Prices Are Going Up More Than 15%.
Part of the search giant's biggest spending line may have just repriced -- and the year the increase lands on doesn't have a budget number yet.
Overview
Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) expects its capital expenditures to reach $195 billion to $205 billion this year, a range management raised in July from a prior $180 billion to $190 billion. And on the earnings call that set it, chief financial officer Anat Ashkenazi said about 60% of the second quarter's technical infrastructure investment went to servers. The other 40% went to data centers and networking equipment.
That mix makes servers the largest single line in the budget. On Saturday, Bloomberg reported that the most important artificial intelligence (AI) servers may be about to cost more -- more than 15% more, in many cases.
Image source: Getty Images.
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Originally published at www.fool.com.
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