At a glance:
- Alphabet announces large-scale Pacific investments, with Google extending undersea cables to eight nations in a U.S.-Australian joint venture.
- Despite a cloud revenue miss, Alphabet's Q3 sales exceeded expectations, rising 11% to $76.7bn, backed by strong advertising revenues.
- Amid spending cuts, Big Tech races to expand telecom infrastructure, focusing on advanced AI capabilities and strategic regional positioning.
Google's Pacific Blueprint: Investments, Alliances, and Global Dominance
WASHINGTON, Oct 25 — It's been an active week for Alphabet with significant global announcements. The highlights of the week a joint U.S.-Australian agreement, Google is set to extend undersea cables to enhance internet connectivity to eight Pacific nations, including Micronesia, Kiribati, and the Solomon Islands, among others.
In a collaborative U.S.-Australian initiative, Alphabet's Google (GOOGL.O) plans to lay undersea cables, bolstering internet access for eight Pacific nations like Micronesia, Kiribati, and the Solomon Islands.
Unveiled during Australian Prime Minister Anthony Albanese's White House visit, this project underscores both nations' commitment to enhancing security and tech in the South Pacific. Canberra pledges $50 million, with Washington contributing $15 million.
U.S. and Australia unite: Bolstering Pacific tech and infrastructure against China's surge
Microsoft and Google are amplifying their investments in the Pacific and Australian regions, seizing the media's attention in collaboration with the Australian and American governments.
This surge in activity is strategically timed to counterbalance the growing Chinese influence in the Pacific, especially following the recent conclusion of China's 10th annual Belt and Road Conference. At this event, China committed to broadening its technology and laboratory investments in partner nations.
Both the U.S. and Australian governments are leveraging media outreach, emphasising their collaborative efforts in the Pacific, aiming to present a united front against China's expanding reach in technological collaborations.
The Pacific's growing strategic importance, marked by infrastructural development and potential military alliances, aligns with President Joe Biden's emphasis on the pivotal role of telecommunications on the global stage.
Alphabet Defies Expectations: Revenue Surge and Strategic Asian Push
Moreover, Alphabet's financial results were also in the spotlight. Despite a slight miss in revenue forecasts for Google’s Cloud division, resilient advertising revenues have propelled Alphabet's sales beyond expectations in the third quarter.
While the cloud revenue rose by 22% to $8.4 billion, the overall revenue of Alphabet saw an impressive 11% hike, reaching $76.7 billion. Earnings per share surged by 46% to $1.55.
Google's Expanding Horizon: Pacific Connectivity, Q3 Financial Triumphs, and AI Endeavours
Alphabet's broader plan involves bolstering investments in the Pacific, focusing on increasing the use of computing and cloud services and ensuring strong connectivity into Asia.
Notably, Google is also laying a fibre-optic cable connecting Taiwan with the Philippines and the U.S. As part of the Pacific initiative, the U.S. will collaborate with the nations on fortifying cybersecurity.
Despite some Big Tech companies tightening their belts this year, the race is on to expand telecommunication infrastructure, especially as they look to deploy and capitalise on advanced artificial intelligence capabilities.
