Google plans $205 billion AI investment
Alphabet raised its 2026 AI capital spending forecast to between $195 billion and $205 billion, the largest in company history.
The investment funds data centers, chips, and other infrastructure for AI models like Gemini, driven by cloud demand exceeding capacity.
Google Cloud revenue surged 82% year-over-year to $24.8 billion in Q2 2026, fueled by demand for AI services.
Alphabet CFO Anat Ashkenazi warned that spending may continue rising in 2027 due to sustained customer demand.
Alphabet's cloud backlog grew to $514 billion, with over half expected to convert to revenue within four years.
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