Alphabet Plans Record Spending in Race to Dominate AI Market (3)

Alphabet Inc. is poised to spend more in 2026 than it has invested in the past three years combined to finance an unprecedented expansion of data centers critical to its artificial intelligence ambitions.

Google’s parent company said capital expenditures will reach as much as $185 billion this year, far exceeding the $119.5 billion that analysts had expected and double what it spent last year. That’s on the heels of a solid revenue beat in the fourth quarter, with $97.23 billion in sales excluding partner payouts surpassing estimates.

Chief Executive Officer Sundar Pichai worked to reassure investors on Wednesday that ...