Google-parent Alphabet says capital spending to soar on AI drive
unknown📝 Article Content
STORY: :: GoogleAlphabet said Wednesday that capital expenditure could double this year.Google's parent company plans to spend up to $185 billion in 2026 in an effort to push ahead of the AI race.That would be around twice last year's figure, and far above analyst expectations.:: GoogleExecutives said investments in AI computing capacity, including servers, data centers and networking equipment, are central to the company's strategy.Alphabet shares saw big swings in after-hours trade as investors balanced the big spending plans against revenue that also soared. The stock dropped 6% before recovering to end the day flat. Big Tech companies are expected to collectively shell out more than $500 billion on AI this year.Facebook parent company Meta last week hiked investment in AI development by 73%, while Microsoft has also reported record quarterly capital expenditure.:: Microsoft:: Meta PlatformsIt all comes at a time when investors have increasingly grown concerned about payoffs from AI investments.Google, however, has been able to show strong progress in its AI efforts, helping its stock surge 76% since the beginning of last year.The company's cloud business reported stellar growth in the fourth quarter, with revenue surging by almost a half to $17.7 billion.:: GoogleGoogle says its enterprise-grade Gemini model has also sold 8 million paying seats. Last month, it secured a partnership with Apple to power the iPhone maker's AI offerings with Gemini.
📄 Summary
STORY: :: GoogleAlphabet said Wednesday that capital expenditure could double this year.Google's parent company plans to spend up to $185 billion in 2026 in an effort to push ahead of the AI race.That would be around twice last year's figure, and far above analyst expectations.:: GoogleExecutives said investments in AI computing capacity, including servers, data centers and networking equipment, are central to the company's strategy.Alphabet shares saw big swings in after-hours trade as investors balanced the big spending plans against revenue that also soared. The stock dropped 6% before recovering to end the day flat. Big Tech companies are expected to collectively shell out more than $500 billion on AI this year.Facebook parent company Meta last week hiked investment in AI development by 73%, while Microsoft has also reported record quarterly capital expenditure.:: Microsoft:: Meta PlatformsIt all comes at a time when investors have increasingly grown concerned about payoffs from AI investments.Google, however, has been able to show strong progress in its AI efforts, helping its stock surge 76% since the beginning of last year.The company's cloud business reported stellar growth in the fourth quarter, with revenue surging by almost a half to $17.7 billion.:: GoogleGoogle says its enterprise-grade Gemini model has also sold 8 million paying seats. Last month, it secured a partnership with Apple to power the iPhone maker's AI offerings with Gemini.