Alphabet Inc. Amplifies AI Commitment with a Record $185B Investment
Alphabet Inc. sent shockwaves through Wall Street on February 4, 2026, when it announced capital expenditures ranging from $175 billion to $185 billion for 2026. This figure is nearly double the $91.4 billion invested in 2025, making it the largest commitment to AI infrastructure in the company’s history.
The announcement coincided with robust fourth-quarter results that surpassed expectations. Revenue saw an 18% increase, reaching a total of $113.8 billion. Google Cloud stood out with its impressive growth, as revenue spiked 48% year-over-year to $17.7 billion. This surge was primarily driven by the escalating demand for AI products and services.
CFO Anat Ashkenazi disclosed that approximately 60% of the investment will be allocated towards servers, with the remaining 40% directed towards data centers and networking equipment. This expenditure will bolster AI compute capacity for Google DeepMind, cater to significant cloud customer demand, and enhance user experience across Google services. The company’s cloud backlog witnessed a 55% sequential increase, reaching a staggering $240 billion.
CEO Sundar Pichai justified the unprecedented investment, stating, “the risk of under-investing in AI infrastructure is far greater than the risk of over-investing.” The company’s Gemini AI app now boasts 750 million monthly active users, a significant increase from 650 million in the previous quarter.
Source: CNBC