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Google’s Capital Spending Doubled In 2018; Fastest Growth In 4 Years

Reportedly, Google’s capital spending is increasing pretty faster than its profits. Alphabet stated in the recent earnings report that the company’s capital expenditures—which comprise the costs of amenities and data centers—was doubled in 2018, the fastest development in at least 4 Years. While the majority of Google’s proceeds come from ads, the company has been taking more business from cloud-based infrastructure and cloud applications, which needs data center equipment. The tech giant also persists to recruit rapidly across worldwide, requiring it to purchase and rent more space for people to work.

Google’s capital expenses in 2018 surged by 102% to $25.46 Billion, which is more than a growth rate of 34% in 2017. In the fourth quarter, the investment increased by 80% to $6.85 Billion, whereas revenue climbed by 21% to $39.1 Billion. Alphabet invested much more in the past year than competitor Microsoft, which shelled out $16 Billion in investment expenditures, which is below 39% year over year. The data center development is significant for Google as is raises out its cloud computing capability. In addition, the company purchased Chelsea Market in New York and has done real estate spending since in places counting Texas.

Recently, Google was in news as the tech giant has hired micro workers to direct its controversial mission Maven AI (artificial intelligence). As per to a recent report from The Intercept, the company has hired gig economy workers to assist in building AI out a controversial project that the company had associated with the Pentagon to develop. The workers were recruited through a crowdsourcing gig firm outfit known as Figure Eight, which compensates as little as $1 per hour for people to execute short, seemingly tedious tasks. Whether the work is by identifying objects in CAPTCHA-like pictures, or other easy tasks, the employees were aiding to train Google’s AI that was formed as part of the U.S. DOD (Department of Defense) initiative called as Project Maven.