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

• Google parent Alphabet plans to nearly double its capital expenditure to $175-$185 billion by 2026, up from $91.5 billion last year.
• The increased spending aims to meet rising customer demand and capitalize on expanding growth opportunities in AI.
• Rivals like Meta are also significantly increasing their capital expenditure, highlighting the intense investment in the AI sector.
• Alphabet's aggressive investment follows strong financial performance, with Google Cloud revenue jumping 48% and annual revenue exceeding $400 billion.
• Google has made a significant comeback in the AI race with models like Gemini 3 and deepened partnerships, including a multi-year agreement with Apple.