Google’s AI spending spree is paying off—profits are soaring even as they pour billions into servers. Cloud revenue jumped 63%, search ads climbed 19%, and operating margins hit a five-year high. But the cost is steep: $35B spent last quarter, expected to hit $44B soon—with depreciation stretching the impact over years. Can they keep growing revenue while managing the AI bill? Margins may dip slightly, but if they maintain 20% sales growth and 35% margins, they’re still ahead.

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