Alphabet to Double AI Spending to $185 Billion by 2026 Amid Intense AI Race

• Google's parent company, Alphabet, plans to invest $175 billion to $185 billion in capital expenditures by 2026, doubling its 2023 spending of $91.5 billion.
• This significant increase in spending is driven by the intensifying artificial intelligence (AI) arms race and aims to meet customer demand and capitalize on growing opportunities.
• Investments will focus on AI compute capacity to support Google DeepMind's frontier model development, improve user experience, and boost advertiser ROI across Google services.
• Alphabet reported strong financial growth, with annual revenue crossing $400 billion for the first time in 2025, and Google Cloud revenue jumping 48% in Q4 2025.
• Google has made a strong comeback in the AI race with models like Gemini 3, attracting over 750 million monthly active users for the Gemini app, and a partnership with Apple for future AI features.