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Alphabet Pushes Deeper Into AI Chips And Search Ads

Original: Why Is Alphabet (GOOGL) Expanding AI Chips And Search Ads Now?

Alphabet is expanding its custom AI chips alongside its core search advertising business, a dual move reported by Yahoo Finance. Investors are weighing whether owning more of its own silicon will cut Google's reliance on outside chip suppliers and lower the cost of running AI services, while search ads remain the company's main revenue engine as competition in AI intensifies.

Why now: Alphabet's AI ambitions and its dependence on advertising revenue are under close investor scrutiny as rivals race to commercialise AI.

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