BIG blow to Sundar Pichai as Google loses Rs 17501260000000 due to…

Alphabet Inc., the parent company of Google's stock plunged by more than 8% on Wednesday, marking the greatest percentage fall since October 2023. The decline cost for Google parent Alphabet, slide erased as much as $211 billion in market value. According to reports, the decrease is the company's biggest one-day value decline. In midday trading, Alphabet shares finished at $193, down 7.6% at $190.70.

Google's fall comes weeks after chipmaking giant Nvidia had a similar outcome after releasing China's ground-breaking AI model, DeepSeek R1, which completely turned the AI industry on its head.

Even though Google's results were above Wall Street's expectations, the company's revenue fell, and its price fell as a result. Despite a slowdown in sales growth, the tech giant announced plans to boost spending on AI initiatives, which coincided with its decline.

The stock sell-off, according to market analysts, is a reflection of growing investor apprehension about the rising AI expenditure among major US tech firms. This concern has increased since a Chinese startup unveiled the DeepSeek R1, a potent AI model that was created for less than $6 million and without the use of Nvidia's top-tier hardware.

The effectiveness and necessity of the significant AI expenditures being made by US companies like Google, Microsoft, and OpenAI have come under scrutiny following the DeepSeek discovery, they added.

At the company's earnings call earlier.  Sundar Pichai, the CEO of Google, revealed intentions to spend an incredible $75 billion on capital projects in 2025, a huge increase from the $52.5 billion spent the year before.

Reports state that Google's massive investment is mostly focused on enhancing its AI infrastructure and capabilities. In the earnings announcement, Sundar Pichai stated, "We are optimistic about the opportunities ahead, and we expect to invest approximately $75 billion in capital expenditures in 2025 to accelerate our progress."

When questioned about China's DeepSeek AI, Sundar Pichai claimed that although the Chinese AI model's team is "amazing" and producing "very good work," Google's models "are some of the most efficient models out there, including compared to DeepSeek's V3 and ROne."

As they compete with Chinese internet giants to create state-of-the-art AI models, Google and other US Big internet companies, such as Microsoft, Facebook parent Meta, and Amazon, are investing heavily in building AI infrastructure.

Regarding China's DeepSeek, Sundar Pichai In response to a question concerning DeepSeek's advancements, Pichai stated that although the company's staff is "amazing" and performing 'very well,' Google's models "are some of the most efficient models out there, including comparing to DeepSeek's V3 and R1." His remarks imply that Google is placing a wager on the cost-effectiveness and future scalability of AI applications to defend the existing investment.