Home / Business and Economy / Alphabet's AI Gamble: $175B+ Spend Sparks Investor Concern
Alphabet's AI Gamble: $175B+ Spend Sparks Investor Concern
5 Feb
Summary
- Alphabet plans $175B-$185B spending in 2026, far exceeding analyst expectations.
- CEO Sundar Pichai states AI investments are fueling revenue and expanding search.
- Google supplies specialized AI chips to Anthropic and powers AI for Apple's Siri.
Alphabet Inc. anticipates a substantial investment of $175 billion to $185 billion for 2026, a figure considerably higher than the $119.5 billion analysts projected. This aggressive spending plan follows a fourth-quarter revenue beat, with sales excluding partner payouts reaching $97.23 billion.
Chief Executive Officer Sundar Pichai asserted that these AI-driven investments are yielding positive results, contributing to revenue and growth. He noted an expansion in search usage, fueled by AI advancements.
Google's commitment to AI is evident in its $17.7 billion revenue from Google Cloud, exceeding expectations. The company is actively enhancing its Gemini model and integrating it into products.
Further cementing its industry position, Google is providing up to one million specialized AI chips to Anthropic. Additionally, Gemini will power AI features for Apple's Siri on iPhones, boasting 750 million monthly active users for the Gemini app.
