Alphabet spends ~$200B on AI capacity this year, capex to "increase significantly" in 2026
fortune · reddit · 2026-10-14
Alphabet president and CIO Ruth Porat said the company is spending roughly $200 billion this year building AI capacity, with capex set to "increase significantly" next year as the company remains "capacity constrained."
- In July Alphabet raised its 2026 capex outlook to as much as $205B; the stock fell over 6% the next day as Wall Street demands proof of returns
- Q2 capex hit $44.9B, the vast majority for AI-related technical infrastructure (CFO Anat Ashkenazi)
- Porat oversees GV, CapitalG and Other Bets; formerly Alphabet CFO for nearly a decade and Morgan Stanley CFO before that
- Attractive returns require adding value to partners for revenue growth and delivering compute efficiently, she said
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