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Alphabet’s Playbook Includes Pumping Billions Into Networking, AI

January 03, 2019 / Jessica Lyons Hardcastle

Google’s parent company Alphabet is pumping billions of dollars into its networking strategy as it works to build — and own — the artificial intelligence (AI) ecosystem, according to MTN Consulting’s Alphabet Playbook. This report is the third in the consulting firm’s Webscale Playbook series, covering the “Super 8” webscale network operators: Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent. It looks at Alphabet’s quarterly earnings and spending priorities, as well as the company’s networking strategy and disruptive impact on the network infrastructure market. Alphabet has recently been spending more on capex than research and development as it builds data centers, submarine cables, and other network infrastructure, the report says. Networking Spend For example, in February 2018, Google announced a $2.5 billion investment for 2018 alone to expand or open new data centers across the U.S. It also opened three...