Alphabet Spends $51.4B on AI, SpaceX AI Sales Surge

Key Takeaways

• SpaceX AI sales surged 830% to $7.6 billion in Q3 but capex jumped 185% to $19.6 billion, with 83% allocated to AI
• Alphabet spent $51.4 billion on capex in Q3 and posted two consecutive quarters of negative free cash flow
• Intel's Data Center and AI division grew 78% to $7.3 billion while its PC business declined 5%
• Taiwan Semiconductor revenue grew 41.2% to $46.7 billion with high-performance computing at 68% of total revenue
• SpaceX shares are down about 5% from the $150 IPO price despite strong AI revenue growth
• Alphabet CFO says server spending has a payback period of less than two years
• Intel's total Q3 revenue reached $16.5 billion, up 21% year over year
• Taiwan Semiconductor's advanced manufacturing processes made up 79% of wafer revenue
• SpaceX expects capex up to $40 billion this year with Starlink sales rising 69% to $5.2 billion
• Alphabet raised $40 billion in funding while burning through over $9 billion in cash last quarter

Tempus AI revenue jumps 23% but net loss cut by gains

Tempus AI reported third-quarter revenue of $411.5 million, up 23 percent, and raised its 2026 revenue outlook. The net loss narrowed to $14.9 million from $80.0 million, largely due to $42.8 million in unrealized gains on marketable securities. Data and Applications revenue grew 33 percent to $108.1 million with gross margin above 71 percent. Adjusted EBITDA rose to $25.6 million from $1.5 million, though stock-based pay of about $48 million was added back. Shares rose about 3.9 percent in pre-market trading.

Solana seen as top crypto pick for AI agent payments

AI agents are increasingly using cryptocurrency to make trades and purchase services, and Solana is a key platform for that activity. Transactions finalize within 150 milliseconds after the Alpenglow upgrade and usually cost less than a penny. Solana's total chain fees rose 53 percent quarter over quarter to $62.9 million in the third quarter of 2026. The coin's market cap was about $60.3 billion at the time. The author plans to add more to their Solana position.

Invesco AI ETF recommended as Anthropic IPO nears

Anthropic filed registration documents on Oct. 26 with an expected valuation between $1.5 billion and $2 billion, but the article recommends a broader AI ETF instead. The Invesco AI and Next Gen Software ETF is up 53 percent year-to-date and 57 percent over the past 12 months. It tracks the STOXX World AC NexGen Software Development Index and holds companies with at least 50 percent revenue from future software development. Top holdings include AMD, Nvidia, Meta, Micron and Alphabet, with an expense ratio of 0.57 percent.

Invesco AI ETF offered as safer Anthropic alternative

The article highlights the Invesco AI and Next Gen Software ETF as a diversified way to invest in AI without betting on a single IPO like Anthropic. The fund is up 53 percent year-to-date and 57 percent over 12 months, ranking among top AI ETFs. About 50 percent of the portfolio is in semiconductor stocks, with AMD, Nvidia and Meta as the largest holdings. It includes international stocks in Taiwan, Japan and South Korea and rebalances four times per year with a 0.57 percent expense ratio.

SpaceX faces AI trade sell-off despite huge revenue growth

SpaceX's AI sales rose 830 percent to $7.6 billion in the third quarter, showing strong growth in its AI segment including Grok and AI cloud rentals. However, capex surged 185 percent to $19.6 billion in the quarter, with 83 percent allocated to AI. SpaceX shares are down about 5 percent from their $150 opening price since the June IPO. The company expects capex up to $40 billion this year. Investors remain skeptical about whether massive AI spending will pay off long term.

SpaceX AI Sales Surge but Stock Struggles Amid Investor Skepticism

SpaceX reported AI sales that jumped 830% to $7.6 billion in the third quarter. However, investors remain worried because the company's spending rose 185% to $19.6 billion, with most of that going to AI. SpaceX says capital spending could reach $40 billion this year. The company also earns money from Starlink and space launches, but high AI costs continue to weigh on its stock.

SpaceX Faces Uphill Battle as AI Spending Soars

SpaceX's AI revenue grew 830% to $7.6 billion in the third quarter, now making up 52% of total revenue. The company's capital spending jumped 185% to $19.6 billion, with 83% allocated to AI. SpaceX shares are still down about 5% from their IPO price of $150. Starlink sales rose 69% to $5.2 billion with 13.6 million subscribers, and space launch revenue grew 6% to $1.8 billion.

Alphabet CFO Addresses Concerns Over Massive AI Spending

Alphabet spent $51.4 billion on capital expenditures last quarter, mostly on AI, and raised $40 billion in funding. CFO Anat Ashkenazi said the company expects strong returns on its investments and solid cash flow from operations. Alphabet has an advantage because it controls the full AI stack, including TPU chips, large language models, and Google Cloud. The company's server spending has a payback period of less than two years.

Intel and Taiwan Semiconductor Show Different AI Stories

Intel's third-quarter 2026 revenue rose 21% year over year to $16.5 billion, with its Data Center and AI division up 78% to $7.3 billion. However, its PC business declined 5% due to weaker consumer demand. Taiwan Semiconductor's revenue grew 41.2% to $46.7 billion, driven by AI infrastructure investment. High-performance computing made up 68% of Taiwan Semiconductor's revenue, up from 57% a year earlier.

Intel Recovery Slow While Taiwan Semiconductor Grows Fast

Intel is recovering but faces challenges as it tries to compete in chip manufacturing. Its third-quarter 2026 revenue reached $16.5 billion, up 21% year over year, led by data center processors. Taiwan Semiconductor reported revenue of $46.7 billion, up 41.2% year over year, with advanced manufacturing processes making up 79% of wafer revenue. The company is well positioned in the AI supply chain as demand for advanced chips grows.

C3.ai stock rallies nearly 30% despite weak earnings

C3.ai shares rose from $9.18 in July to $11.85 at the end of October, a near-30% gain. The company reported revenue of $52.4 million for the period ending July 31, down 25% from the prior year, and a net loss of $92.8 million. CEO Tom Siebel returned in May after resigning a year earlier due to health reasons. The stock is still down 74% over the past five years.

3 top AI stocks to consider buying in November

Analysts recommend Amazon, Alphabet, and Nvidia as strong AI stock picks for November. Alphabet's Google Cloud grew revenue 103% in Q3, while Amazon's AWS grew 39% year over year and makes up 63% of Amazon's operating profits. Nvidia told investors to expect 70% revenue growth in 2027 and trades at just 13 times next year's earnings. Both Amazon and Alphabet saw stock sell-offs after earnings despite strong growth numbers.

AI investors shift focus from revenue to cash flow

Global markets are reassessing how AI companies make money, moving from a revenue-growth story to a free-cash-flow and return-on-capital story. Alphabet fell 12.6% in one day after its Q3 report when capex reached $51.4 billion, mostly for technical infrastructure. Amazon's AWS grew over 39% year over year but still faced stock pressure. Investors now question whether spending on AI infrastructure will produce enough profit to cover costs.

Alphabet has worst stock day as AI spending strains cash flow

Alphabet's stock fell sharply after its Q3 earnings report showed slowing advertising revenue growth while AI Mode queries carried lower monetization. Capital expenditures more than doubled to $51.4 billion, and the company burned through over $9 billion in cash last quarter. Alphabet posted two consecutive quarters of negative free cash flow, a first in its history. Jefferies analysts expect that figure to stay negative through 2028.

4 stocks building AI agent tools businesses will pay for

Change Agents Corporation launched Beacon, a subscription-based AI search optimization platform charging $20 per month to help small businesses improve visibility across ChatGPT, Gemini, Perplexity, Grok, and Claude. The company targets 5.6 million U.S. small businesses with fewer than 50 employees. Meta Platforms reports over 2 million businesses use its business agent every week. Several software companies including CRM and NOW are also monetizing agentic AI solutions for enterprises.

ISG reports AI sales now make up over half of revenue

Information Services Group says AI-related sales grew 56% year over year to nearly $34 million. The firm crossed the 50% revenue mark ahead of schedule. Total revenue is estimated at $65 million to $68 million. ISG advises enterprises on AI spending and vendor choices.

Study examines whether transaction prices reflect visual preferences

Researchers created MarketImage to test if online marketplace prices reflect visual preferences. They found only 24.2% of image pairs had non-tied prices. Of those, 34.7% agreed with human majority rankings. Transaction prices are uncertain proxies for visual preference signals.

AI platform detects alleged 5700 crore GST fraud in India

Innefu Labs says its AI platform Prophecy Eagle I found a suspected GST fraud network. The network involves over 1,500 businesses and 5,700 crore in potentially fraudulent tax credits. The platform identified patterns like circular trading and reused identities. The findings still need verification by enforcement authorities.

OpenAI's doughnut shaped AI speaker enters supply chain

OpenAI is developing a doughnut shaped screenless AI speaker with Jony Ive's team. The device is expected to launch in 2027 at around $400. AAC Technologies is a key supplier providing acoustics and motors. The supply chain includes assembly, batteries, and sensor vendors.

S&P 500 falls as investors worry about AI costs

The S&P 500 closed at 7,580.07, down about 0.6% from the prior week. Google dropped 12% due to heavy AI spending and weak search revenues. Intel fell over 28%, triggering a chipmaker selloff. High AI costs and expected Fed rate hikes fueled market volatility.

Profound opens new Singapore office for AI marketing

Profound plans to open a new office in Singapore during the fourth quarter of 2026. The company will hire more than 15 local staff for roles in management and sales. Some employees from New York will move to Singapore for one year to help start the business. CEO James Cadwallader calls AI the new front door for every business. The company shared data showing a 23 percent rise in conversations about buying products in Singapore between January and September 2026. This expansion shows where Profound is investing in local support and distribution.

Real estate firms trust AI more when data is unified

Blackstone uses an AI model trained on 14 years of internal deal memos to help its investment team. The model acts like a chief investment officer but does not get a vote on deals. Survey data shows that 55 percent of professionals trust AI to summarize documents, but only 35 percent trust it to score deals. Firms that invest in high-quality data first see better results from their AI tools. Many companies struggle because their data is scattered across different spreadsheets and inboxes. Experts say firms should focus on building one trusted place for their data memory instead of adding more tools.

Sources

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• C3.ai: What's Behind the Stock's Surge in the Past 3 Months?
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• Businesses Are Starting to Pay for AI Agents: 4 Stocks Building in the Space (CHGA, META, CRM, NOW)
• Information Services Group says AI sales now exceed half of its revenue
• Do Transaction Prices Reflect Visual Preference? A Diagnostic Study with Multimodal Language Models
• AI platform detects alleged ₹5,700 crore GST fraud network involving 1,500 shell companies in India
• OpenAI's Reportedly First Doughnut-Shaped AI Hardware: Supply Chain Breakdown; AAC Technologies (02018.HK) Among Core Beneficiaries
• S&P 500 Falls As Investors Get Spooked By High Costs Of AI
• Profound expands AI search marketing into APAC
• AI’s Payoff for Real Estate Investors Comes From What the Model Can See