Google parent Alphabet Inc.’s shares dropped in premarket trading after slower growth in its cloud business contributed to lower-than-expected revenue in the fourth quarter.

Alphabet shares fell 8% on Wednesday as investors balked at the Google parent's slowing cloud growth and planned $75 billion capital spending for the year, underscoring growing fears over Big Tech's escalating artificial intelligence costs.

Alphabet's Google is scrapping its goal to hire more employees from historically underrepresented groups and is reviewing some of its diversity, equity and inclusion initiatives, the Wall Street Journal reported on Wednesday.

According to an internal memo, the company is also reevaluating changes to its other DEI programs 'to comply with recent court decisions and US Executive Orders.'