Alphabet said on Tuesday it will spend $75 billion on its AI buildout this year, 29% more than Wall Street expected, while posting cloud revenue that missed analysts' target.The tech giant's shares were down 9% in extended trading.

Key Takeaways Shares of Google parent Alphabet tumbled Wednesday amid worries about whether the tech giant's spending on AI will pay off. Several analysts lowered their price targets for the stock, citing concerns about the company's weaker-than-expected cloud growth and plans to ramp up spending on AI.

Alphabet reports fourth-quarter earnings after Tuesday's closing bell. Investors will be focused on cloud momentum and AI traction, with shares of the Google and YouTube parent company holding fast near the record levels achieved last week.

Google has become the latest big tech company to scrap diversity, equity, and inclusion (DEI) initiatives in the wake of President Donald Trump 's attacks against such programs.

Google is scrapping some of its diversity hiring targets, joining a lengthening list of U.S. companies that have been abandoning or scaling back their diversity, equity and inclusion programs