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Google's AI Spending Surge Challenges Rivals
5 Feb
Summary
- Alphabet plans $175B-$185B capital expenditure for 2026.
- Company's valuation nears Nvidia's as AI capabilities grow.
- Alphabet's AI investments aim to outpace Meta's spending.
Alphabet, the parent company of Google, is significantly escalating its investment in artificial intelligence infrastructure.
For 2026, Alphabet has announced a capital expenditure plan of $175 billion to $185 billion, more than double its 2025 spending. This ambitious figure surpasses Meta Platforms' projected spending by 50% and signals a major commitment to AI development.
This substantial investment comes as Alphabet's valuation increasingly challenges that of AI chipmaker Nvidia. The company is leveraging its in-house TPUs and Gemini AI models to compete with rivals like OpenAI and Anthropic, even powering some of Anthropic's offerings.
