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Alphabet will seek to reassure investors as AI rivals step up competition

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FILE PHOTO: Alphabet, faced with unprecedented threats from AI rivals, will be keen to assure investors that the company’s own spending on the tech is helping it dig a deeper moat around its search and advertising businesses.
| Photo Credit: Reuters

Alphabet, faced with unprecedented threats from AI rivals, will be keen to assure investors this week that the company’s own spending on the technology is helping it dig a deeper moat around its search and advertising businesses.

Rivals of the Google parent, including AI startups such as OpenAI and Perplexity, have attracted tens of millions of users to their platforms. They are looking to break Google Chrome’s dominance with their own browsers, even as a U.S. court weighs breaking up the tech company with remedies that may include a forced Chrome sale.

To maintain its grip, Alphabet has rolled out tools such as AI Overviews, which show AI-generated summaries on top of traditional links that have drawn 1.5 billion users per month, and made more Gemini models available to enterprise users. The integration of AI into Google search is key to its advertising appeal, as it offers advertisers the ability to run more effective campaigns and get bigger returns on their dollars. In March, Google added a new AI-only mode to its search. Alphabet, scheduled to report second-quarter results on Wednesday, has also staged a coup, securing rival OpenAI as a customer for its cloud business.

“AI targeting advantages and increasing ad loads in AI Overviews could drive ad performance above traditional search,” BofA Global Research analysts said.

THE CONTEXT

Wall Street has been looking for returns from Big Tech’s AI spending spree that is expected to total $320 billion this year.

Google reassured investors in late April with better-than-expected first-quarter earnings that were powered by AI demand. But OpenAI and Perplexity’s launch of their own browsers has intensified pressure on Google’s search business, which was already under strain from AI chatbots pulling away queries.

“As those (AI) companies deploy their browsers, that’ll take more searches away from Google. But the bigger threat will be when those companies have enough of a user base that they start selling advertising,” said D.A. Davidson analyst Gil Luria.

“It’s only when Google loses advertisers that the revenue is going to be impacted.”

Also, Alphabet’s Waymo, the early U.S. leader in autonomous cabs and often overlooked during earnings, is likely to draw more attention as Elon Musk’s Tesla rolls out a test fleet in Austin, Texas.

THE FUNDAMENTALS

** Alphabet is expected to report a near 11% jump in total revenue for the second quarter, per LSEG data.

** Analysts expect a 7.5% rise in advertising revenue and a 26.2% jump in its cloud computing segment.

** Per-share earnings are expected to be around $2.18, excluding one-off items.

WALL STREET SENTIMENT

** Alphabet shares are largely flat so far this year.

** Stock is among the laggards in the “Magnificent Seven” group of megacap stocks, with Nvidia leading the range with a 28% jump and Tesla at the bottom with a 19% decline.

** Alphabet is rated “buy” on average among 55 brokerages, with a median price target of $203.84.



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AI and cybersecurity: India’s chance to set a responsible global digital standard

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India’s digital economy is experiencing extraordinary growth, driven by government initiatives, private enterprise, and widespread technological adoption across users from diverse socio-economic backgrounds. Artificial intelligence (AI) is now woven into the fabric of organisational operations, shaping customer interactions, streamlining product development, and enhancing overall agility. Yet, as digitisation accelerates, the nation’s cyber risk landscape is also expanding—fuelled by the very AI innovations that are transforming business.

In a rapidly evolving threat landscape, human error remains a persistent vulnerability. A recent cybersecurity survey revealed that 65% of enterprises worldwide now consider AI-powered email phishing the most urgent risk they face. India’s rapidly growing digital user base and surging data volumes create an environment for increased risks.

Yet, there’s a strong opportunity for India to leverage its unique technical strengths to lead global conversations on secure, ethical, and inclusive digital innovation. By championing responsible AI and cybersecurity, the country can establish itself not only as a global leader but also as a trusted hub for safe digital solutions.

The case for a risk-aware, innovation-led approach

While AI is strengthening security measures with rapid anomaly detection, automated responses, and cost-efficient scalability, these same advancements are also enabling attackers to move faster and deploy increasingly sophisticated techniques to evade defences. The survey shows that 31% of organisations that experienced a breach faced another within three years, underscoring the need for ongoing, data-driven vigilance.

Globally, regulators are deliberating on ensuring greater AI accountability, frameworks with tiered risk assessments, data traceability, and demands for transparent decision-making, as seen in the EU AI Act, the National Institute of Standards and Technology’s AI Risk Management Framework in the US, and the Ministry of Electronics and Information Technology’s AI governance guidelines in India.

India’s digital policy regime is evolving with the enactment of the Digital Personal Data Protection Act and other reforms. Its globally renowned IT services sector, increasing cloud adoption, and digital solutions at population scale are use cases for nations to leapfrog in their digital transformation journey. However, there is a continued need for collaboration for consistent standards, regulatory frameworks, and legislation. This approach can empower Indian developers as they build innovative and compliant solutions with the agility to serve Indian and global markets.

Smart AI security: growing fast, staying steady

The survey highlights that more than 90% of surveyed enterprises are actively adopting secure AI solutions, underscoring the high value organisations place on AI-driven threat detection. As Indian companies expand their digital capabilities with significant investments, security operations are expected to scale efficiently. Here, AI emerges as an essential ally, streamlining security centres’ operations, accelerating response time, and continuously monitoring hybrid cloud environments for unusual patterns in real time.

Boardroom alignment and cross-sector collaboration

One encouraging trend is the increasing involvement of executive leadership in cybersecurity. More boards are forming dedicated cyber-risk subcommittees and embedding risk discussions into broader strategic conversations. In India too, this shift is gaining momentum as regulatory expectations rise and digital maturity improves.

With the lines between IT, business, and compliance blurring, collaborative governance is becoming essential. The report states that 58% of organisations view AI implementation as a shared responsibility between executive leadership, privacy, compliance, and technology teams. This model, if institutionalised across Indian industry, could ensure AI and cybersecurity decisions are inclusive, ethical, and transparent.

Moreover, public-private partnerships — especially in areas like cyber awareness, standards development, and response coordination — can play a pivotal role. The Indian Computer Emergency Response Team (CERT-In), a national nodal agency with the mission to enhance India’s cybersecurity resilience by providing proactive threat intelligence, incident response, and public awareness, has already established itself as a reliable incident response authority.

A global opportunity for India

In many ways, the current moment represents a calling to create the conditions and the infrastructure to lead securely in the digital era. By leveraging its vast resource of engineering talent, proven capabilities in scalable digital infrastructure, and a culture of economical innovation, India can not only safeguard its own digital future but also help shape global norms for ethical AI deployment. This is India’s moment to lead — not just in technology, but in trust.

This article is authored by Saugat Sindhu, Global Head – Advisory Services, Cybersecurity & Risk Services, Wipro Limited.

Disclaimer: The views expressed in this article are those of the author/authors and do not necessarily reflect the views of ET Edge Insights, its management, or its members



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Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule

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If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps [File]
| Photo Credit: REUTERS

Nvidia said on Friday the AI GAIN Act would restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have.

Short for Guaranteeing Access and Innovation for National Artificial Intelligence Act, the GAIN AI Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers.

“We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips,” an Nvidia spokesperson said.

If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps.

“It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips,” the legislation reads.

The rules mirror some conditions under former U.S. President Joe Biden’s AI diffusion rule, which allocated certain levels of computing power to allies and other countries.

The AI Diffusion Rule and AI GAIN Act are attempts by Washington to prioritise American needs, ensuring domestic firms gain access to advanced chips while limiting China’s ability to obtain high-end tech amid fears that the country would use AI capabilities to supercharge its military.

Last month, U.S. President Donald Trump made an unprecedented deal with Nvidia to give the government a cut of its sales in exchange for resuming exports of banned AI chips to China.



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AI will reshape internet, create jobs in West Virginia says High Technology Foundation's Estep – WV News

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AI will reshape internet, create jobs in West Virginia says High Technology Foundation’s Estep  WV News



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