Alphabet's YouTube Slowdown And OpenAI's Search News Eclipsed The AI Prospects

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Alphabet Inc reported its second-quarter financials, with revenue surpassing estimates driven by search and cloud growth. However, YouTube advertising revenue fell short due to tough competition. The company's AI investments raised concerns about margin squeeze.

Meanwhile, Microsoft Corporation-backed OpenAI introduced its own AI-powered search engine, posing a challenge to Google. This move led to a drop in Alphabet's shares by over 3%, highlighting the competitive landscape in the AI sector.

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