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Thursday, February 5, 2026
Alphabet Plans to Double Capital Spending
Alphabet, owner of Google, said it plans to invest between 175 billion to 185 billion US dollars in capex in 2026, up from 91.4 billion for 2025.
In response to a question about what keeps him up at night, Sundar Pichai, CEO of Alphabet, said: "We've been on this AI-first trajectory for over a decade now, and it's what we've been methodically thinking our way through. It's the reason why we have been working on TPUs for over a decade, as an example. But I think specifically at this moment, maybe the top question is definitely around compute capacity, all the constraints, be it power, land, supply chain constraints, how you ramp up to meet this extraordinary demand for this moment. Get our investments right for the long-term and do it all in a way that we are driving efficiencies and doing it in a world-class way."
Alphabet said it is investing in "AI compute capacity to support frontier model development by Google DeepMind, ongoing efforts to improve the user experience, and drive higher advertiser ROI in Google Services, significant Cloud customer demand, as well as strategic investments in Other Bets," which includes its self-driving unit Waymo.
Alphabet said Waymo has surpassed 20 million fully autonomous trips and is now providing more than 400,000 rides every week. Source: Alphabet transcript
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