[Alphabet’s third-quarter revenue and profit fell short of expectations, and the stock price fell by 8.5% after hours.] On October 29, Alphabet’s third-quarter sales and profits were lower than expected, indicating that the company failed to generate sufficient returns to justify its huge AI investment. The stock price fell by 8.5% after hours. After excluding partner shares, Alphabet's sales for the three months ended September 30 were US$111.2 billion, slightly lower than analysts' average estimate of US$111.3 billion; net income per share was US$2.12, far lower than Wall Street's estimate of US$2.99. Google's race to build AI infrastructure for itself and its customers has driven capital spending to record levels, with investors demanding proof that the spending is paying off. The company is integrating AI models into products such as search, YouTube and Gmail, but sales in the search unit have also been disappointing. Equity investments generated an $8.7 billion loss in the third quarter, driven largely by holdings in SpaceX and a private company identified as Anthropic, a sharp reversal from gains a year ago and a windfall in the second quarter. Google Cloud had sales of $30.7 billion and profits of $11.1 billion, higher than analysts’ estimates of $29.1 billion in revenue and $9.8 billion in profits. Search and related business revenue was $63.4 billion, below the average estimate of $64.9 billion. The company recorded negative free cash flow for the second consecutive time, posting a deficit of $9.1 billion in the third quarter.