What is Alphabet's projected AI spending for 2026?

Alphabet projects spending between $175 billion and $185 billion for 2026.

How is Alphabet's AI investment impacting its revenue?

CEO Sundar Pichai stated that AI investments and infrastructure are driving revenue and growth across the board.

What role does Google play in AI infrastructure?

Google supplies specialized AI chips to Anthropic and its Gemini model will power AI for Apple's Siri.

Home / Business and Economy / Alphabet's AI Gamble: $175B+ Spend Sparks Investor Concern

Alphabet's AI Gamble: $175B+ Spend Sparks Investor Concern

5 Feb

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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's AI Gamble: $175B+ Spend Sparks Investor Concern

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.