US EditionGoogle parent beats on revenue, projects significant AI spending increase
Alphabet plans $175B-$185B capex in 2026 to double AI and cloud capacity amid 55% cloud backlog growth, focusing on servers, data centers, and frontier AI models.
- Yesterday, Alphabet reported annual revenue exceeded $400 billion in its Q4 2025 earnings release.
- Alphabet says its AI investments and advertising cash flow are driving revenue, with Google Search activity and AI Mode queries boosting demand, and its cloud division becoming a key growth engine.
- Quarterly figures show Alphabet brought in $113.8 billion with $34.5 billion profit and cloud revenue rising 48 percent to $17.7 billion while YouTube advertising grew to $11.4 billion from $10.5 billion.
- Alphabet plans to spend $175 billion to $185 billion in capital expenditures in 2026, and shares declined slightly more than one percent after Waymo raised $16 billion, valuing it at $126 billion.
- Analysts say a U.S. court ruling last year spared Chrome from divestiture, while Gemini AI reached 750 million users and Alphabet has more than 325 million paid subscriptions.
127 Articles
127 Articles
Google’s Investment Surge Is Fabulous News for Utilities
Big tech is spending big on data centers — which means it’s also spending big on power.Alphabet, the parent company of Google, announced Wednesday that it expects to spend $175 billion to $185 billion on capital expenditures this year. That estimate is about double what it spent in 2025, far north of Wall Street’s expected $121 billion, and somewhere between the gross domestic products of Ecuador and Morocco.This is a “a massive investment in ab…
Alphabet reported on Wednesday revenues and profits higher than expected in the fourth quarter and said it expects a significant increase in AI spending compared to last year. The company said it expects this year’s capital expenditure to be in the range of 175 thousand to 185 billion dollars, almost twice as much as 2025. The income of the quarter, which ended on December 31, rose almost 18% to 113 thousand 830 million dollars, compared to 111 …
The tech company Alphabet intends to invest up to 185 billion US dollars in AI this year.
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