
Prof G Markets Google Doubles Down on Spending as AI Fear Returns
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Feb 5, 2026 Rohan Goswami, Semafor business reporter covering Capitol Hill antitrust drama. Jared Holtz, Mizuho healthcare strategist on GLP-1 market dynamics. Scott Devitt, Wedbush tech analyst on earnings and capex. They discuss Google doubling capex and AI-driven revenue, the GLP-1 winners and pricing shifts, the Netflix/Warner political hearing, and why software stocks are under pressure.
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Google’s AI-Led Growth And Heavy CapEx
- Google posted >$400B annual revenue and accelerating search growth driven by AI integration.
- Scott Devitt says massive capex ($175–185B) is front-loading investment to capture long-term AI returns.
Markets Reprice During Investment Cycles
- The market is skittish about large AI-related capex and re-evaluating growth vs. spend.
- Devitt expects a multi-year cycle where returns appear in a later 'harvest' period (2027–28).
Software Sector Facing A Darwinian Reset
- Software multiples are collapsing amid AI uncertainty and fear of seat-loss.
- Devitt predicts a one-to-three year sorting where winners adopt AI and losers get cleansed.





