Google parent Alphabet predicts a sharp surge in 2026 capital spending on AI

Alphabet said on Wednesday it was targeting capital expenditure of $175 billion to $185 billion this year, in yet another aggressive ramp-up in spending from the Google parent as it deepens its investments to push ahead in the AI race.

Analysts on average had expected Alphabet to spend about $115.26 billion this year, according to data compiled by LSEG.

Shares of the company fell more than 6% in extended trading.

Revenue at Google Cloud grew 48% to $17.7 billion in the fourth quarter ended December...