Business
Google goes from laggard to leader as it pulls ahead of OpenAI with stellar AI growth
Alphabet is taking on OpenAI with a gusto that underscores Wall Street’s perception that the Google parent is the leader in AI, a turn of events from a year ago when investors thought it was badly lagging behind rivals and punished its stock.
Alphabet executives struck a more confident tone on the company’s post-earnings call on Wednesday, the first since it released the Gemini 3 model, which has wowed users and helped Google catch up in the artificial intelligence race.
Though it did not mention its chief AI rival by name, Alphabet’s newly confident messaging emphasised a key contrast: Investments in AI have begun to reap returns throughout the entire company. That served as Alphabet’s justification to potentially double its capital expenditures in 2026 — to between $175 billion and $185bn — as a result of massive investments into AI computing capacity.
Alphabet’s prepared remarks about AI in 2025 had focused on product usage and AI revenues generated specifically via its cloud-computing unit.
“Overall, were seeing our AI investments and infrastructure drive revenue and growth across the board,” CEO Sundar Pichai said.
Google’s fresh conviction about AI-fuelled revenue is backed by growth in both its consumer and enterprise businesses.
Pichai said the Google Gemini app, which competes with OpenAI’s ChatGPT, exceeded 750m monthly active users at the end of the December quarter, up from 650m at the end of the prior period. That still trails ChatGPT, which OpenAI CEO Sam Altman said in October had eclipsed 800 million weekly active users.
“We are also seeing significantly higher engagement per user, especially since the launch of Gemini 3,” Pichai said.
Gemini 3 has also been integrated into “AI Mode” in Google’s search engine and powers Google’s enterprise version of Gemini, which Pichai said on the call had reached 8 million paying licences.
Google’s surging capex forecast initially alarmed investors, sending the stock down by as much as 6 per cent in after-hours trading. But a strong showing from its cloud unit – revenue was up 48pc in the December quarter – and an AI-powered boost across the rest of its business quickly reinforced Wall Street’s confidence that Google’s AI bets are beginning to pay off.
The stock recouped the first post-market shock to trade flat after hours, further validating Wall Street’s current message to tech companies: Soaring AI spending can continue only if tech companies demonstrate commensurate financial returns.
Turning Tide
Since the start of last year, Alphabet has gone from laggard to leader among the “Magnificent Seven” megacap companies and is now matched by only Nvidia and Apple among companies with market capitalisations of more than $4 trillion.
Despite taking a comparably modest tone on capital spending for the year, Microsoft’s shares took a massive beating last week, due in part to heightened concerns about its reliance on OpenAI. The company said its fiscal third-quarter spending would decrease from the record $37.5bn it shelled out in the October-to-December period.
With OpenAI striking a string of multi-billion-dollar deals despite still losing money, investors have grown concerned about the company’s ability to finance those commitments, souring sentiment around major tech firms with which it has close links.
Paul Meeks, head of tech research at Freedom Capital Markets, said Alphabet was benefitting from a contrast in sentiment, despite a capex forecast that was “eye-watering.”
“I do think there’s a narrative emerging here where the market is favouring Google versus OpenAI,” Meeks said.
“This time last year, every announcement by OpenAI to do business with somebody was applauded. But then in late 2025, now people are saying, ‘Oh my god, too much of my revenue backlog or AI infra spending is coming from OpenAI.’”
Shares of Oracle, whose contract backlog of more than $500bn hinges largely on OpenAI, are down about 49pc since the start of October. Microsoft, which holds a 27pc stake in OpenAI and counts it as a massive customer, has slid more than 20pc over the same period.
Meanwhile, Alphabet has jumped about 36pc.
“The deals that OpenAI has with Microsoft and Oracle are highly tied to their ability to raise future funds,” said Dan Morgan, portfolio manager at Synovus Trust. “I think that is why you are seeing the street favour Alphabet.”
Alphabet’s deep war chest has been filled by major deals that it has struck in recent months to power products and infrastructure at tech firms Meta and Apple.
“If you are software and you are connected to OpenAI, you’re doubly not intriguing to people. Right now, Google has the hot hand,” said Eric Clark, portfolio manager of the LOGO ETF.
Business
India says it will maintain multiple sources of energy supply
India plans to maintain multiple sources of energy supply and diversify them when needed as New Delhi looks to ensure consumers receive “adequate energy at the right price through reliable and secure supplies”, Indian Foreign Secretary Vikram Misri said on Monday.
Misri was responding to a question at a media briefing seeking clarity on India’s position on the purchase of Russian oil after US President Donald Trump said last week that New Delhi had “committed to stop directly or indirectly” importing it.
“India’s priority is to safeguard the interests of its consumers through an energy policy driven by adequate availability, fair pricing, and reliability of supply,” Misri said.
He added that India was neither dependent on any single source for crude oil nor did it “intend to be”, importing from a “mix of sources” depending on “objective market conditions”, adding that “national interests” guide both the government and Indian energy companies.
Last week, Trump signed an executive order lifting the punitive 25% tariff on all imports from India over its purchase of Russian oil.
The Kremlin earlier said it saw nothing new in India’s announcement that it would diversify its energy sourcing.
India’s Russian oil imports slipped in January as refiners sought more alternative barrels under Western sanctions pressure and US-India trade talks, Reuters reported.
Business
Pakistan to invest $1bn in artificial intelligence by 2030, announces PM
Prime Minister Shehbaz Sharif on Monday announced the government’s plan to invest $1 billion in artificial intelligence (AI) by 2030.
The Indus AI Week 2026 is being held from February 9 to 15 (Sunday). The event’s website describes it as “Pakistan’s official national platform for artificial intelligence — where policy, innovation, talent and investment converge”.
“The Government of Pakistan is committed to investing $1 billion in AI by 2030, which will go a long way in building an AI ecosystem in our country,” the premier said while addressing the event’s inauguration ceremony in Islamabad.
Announcing further steps the country aims to take to keep up with modern technologies, PM Shehbaz said an AI curriculum would be introduced “not only in all federally-controlled or -run schools but all schools” of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).
He emphasised that the plan would be implemented in remote parts of Balochistan as well to “pair our youth for leadership and digital economy”.
The prime minister further said the government would provide 1,000 fully-funded PHD scholarships in AI to students across the country by 2030, which is aimed at building Pakistan’s “world-class research centre fully capacitated”.
“Last but not least, we will launch a nationwide programme to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improving livelihoods,” he added.
“Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” PM Shehbaz affirmed.
He elaborated that agriculture and mines and minerals would be among the areas of focus, adding that the government aimed to empower the youth, which he said comprises 60 per cent of the country’s total population.
“We have to empower them with modern knowledge and modern techniques, and IT startups and IT technicians are already very concerned and feeling the heat and the challenge,” he noted, assuring them the government would bring programmes to “transform them from IT technicians to AI experts”.
He added this would unlock unprecedented gains in agricultural yield, quality and efficiency, as well as in industrial growth and women’s empowerment.
The government approved the National AI Policy in July 2025 to democratise access to artificial intelligence, enhance public services and open up new employment and innovation avenues.
However, the policy’s implementation has stalled more than six months after its approval due to a government decision to amend the composition of the AI Council and a lack of response from provincial governments.
The only pillar of the National AI Policy currently being implemented is creating “Awareness and Readiness”. Officials claim the Indus AI week is the first step in this regard.
‘Nothing short of a game-changer’
At the outset of his address, the premier noted that the Indus AI Week is “going to not only change the technological landscape of Pakistan, but this will be nothing short of a game-changer”.
“In collaboration with our most friendly and brotherly countries, we will start running on this shared pathway with great commitment and enthusiasm,” he added.
PM Shehbaz stressed that the government of his brother and ex-premier Nawaz Sharif was “striving our best to be in line with modern requirements and meet modern challenges”.
He recalled that as the chief minister of Punjab back then, the government undertook various initiatives which were “very, very relevant and important to the promotion of education, health, revenues and encouraging our youth”.
The premier highlighted that the Punjab government initiated a laptop distribution scheme in 2010 in the province’s schools and colleges. He further mentioned that the government rolled out e-libraries and e-stamp papers, with the latter aimed at generating “additional revenue which was being siphoned off through collusion”.
PM Shehbaz also pointed out the computerisation of land records in Punjab carried out with “great partnership with World Bank, which eased out corrupt revenue officers”.
“They were carrying bags in their offices. They were tinkering with the record, and money was exchanged in hands. All of this was brought to a grinding halt through complete digitisation,” he asserted.
The prime minister highlighted that the country’s first Safe City project — which uses surveillance cameras to reduce crime — and the first IT university were established in Lahore.
“Here we are today, learning our lessons from the past and today Pakistan is absolutely ready on its toes to join the world in the field of AI interventions,” he affirmed.
PM Shehbaz also mentioned the digitalisation process of the Federal Board of Revenue (FBR), saying it was “almost transformed” at this point.
He said: “It’s doing a great job. We have controlled smuggling in Pakistan through various, most modern initiatives, bringing in scanners and other digital instruments which have been installed at various ports of Pakistan.
“We are recovering lost sums of money [and] tax evaded through collusion through these platforms.”
“Our commitment is solid, unwavering. We will never look back, we will keep on moving forward, marching forward till a point will soon come one day when Pakistan will find its destiny among the comity of nations.”
Addressing the event, IT Minister Shaza Fatima Khawaja said Indus AI Week aimed to strengthen coordination between universities, governments and international companies, state-run APP reported.
She noted that the Pakistan Digital Authority was preparing a nationwide digital master plan to guide future transformation.
In his remarks, Planning Minister Ahsan Iqbal highlighted that the world had entered a moment where intelligence itself had become a factor of production, with nations competing on ideas, talent, data and technology rather than commodities.
He described AI as a bigger “disruptor” than electricity or the internet.
The minister stated that Pakistan’s engagement with technology began over two decades ago with early IT policies, the creation of the National Database and Registration Authority (Nadra), and large-scale investment in advanced human capital.
Business
Pakistan to invest $1bn in AI by 2030, announces PM Shehbaz
Prime Minister Shehbaz Sharif on Monday announced the government’s plan to invest $1 billion in artificial intelligence (AI) by 2030.
The Indus AI Week 2026 is being held from February 9 to 15 (Sunday). The event’s website describes it as “Pakistan’s official national platform for artificial intelligence — where policy, innovation, talent and investment converge”.
“The Government of Pakistan is committed to investing $1 billion in AI by 2030, which will go a long way in building an AI ecosystem in our country,” the premier said while addressing the event’s inauguration ceremony in Islamabad.
Announcing further steps the country aims to take to keep up with modern technologies, PM Shehbaz said an AI curriculum would be introduced “not only in all federally-controlled or -run schools but all schools” of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).
He emphasised that the plan would be implemented in remote parts of Balochistan as well to “pair our youth for leadership and digital economy”.
The prime minister further said the government would provide 1,000 fully-funded PHD scholarships in AI to students across the country by 2030, which is aimed at building Pakistan’s “world-class research centre fully capacitated”.
“Last but not least, we will launch a nationwide programme to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improving livelihoods,” he added.
“Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” PM Shehbaz affirmed.
He detailed that agriculture and mines and minerals would be among the areas of focus, adding that the government aims to empower the youth, which he said comprises 60 per cent of the country’s total population.
At the outset of his address, the premier noted that the Indus AI Week is “going to not only change the technological landscape of Pakistan, but this will be nothing short of a game-changer”.
“In collaboration with our most friendly and brotherly countries, we will start running on this shared pathway with great commitment and enthusiasm,” he added.
PM Shehbaz stressed that the government of his brother and ex-premier Nawaz Sharif was “striving our best to be in line with modern requirements and meet modern challenges”.
He recalled that as the chief minister of Punjab back then, the government undertook various initiatives which were “very, very relevant and important to the promotion of education, health, revenues and encouraging our youth”.
The premier highlighted that the Punjab government initiated a laptop distribution scheme in 2010 in the province’s schools and colleges.
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