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Google ready to double spending on artificial intelligence to $185 billion

Financial Times: Google said it plans to invest at least $55 billion more in capital expenditure this year than Wall Street forecasts, doubling its massive capital expenditure on artificial intelligence

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2' min read

Translated by AI
Versione italiana

2' min read

Translated by AI
Versione italiana

Google said it plans to invest at least $55 billion more in capital expenditure this year than Wall Street forecasts, doubling its massive capital expenditure on artificial intelligence. The Financial Times reports.

The search giant reported a second consecutive quarter with more than $100 billion in revenue and raised its capital expenditure forecast for 2026 to a range of $175 billion to $185 billion - far exceeding analysts' expectations of around $120 billion - as Google's parent company, Alphabet, said on Wednesday.

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Fourth quarter capital expenditures rose to $27.9 billion, almost doubling from $14 billion last year and exceeding expectations of $27.7 billion. During 2025, the company spent $91.4 billion, indicating that capital expenditure will double this year.

"We are seeing our investments and infrastructure in artificial intelligence driving revenue and growth across the board," said CEO Sundar Pichai.

- The spending spree, notes the FT, overshadowed news of a second consecutive quarter of revenues in excess of $100 billion, driven by solid earnings for the search giant's advertising and cloud computing divisions as demand for artificial intelligence continues to grow.

Net profit for the fourth quarter increased by 30% year-on-year to $34.5 billion, exceeding analysts' expectations of $31.9 billion. The company realised a profit of $132 billion for the full year 2025.

Sales rose 18 per cent to $113.8 billion in the three months to the end of December, exceeding the average estimate of $111.3 billion, according to FactSet data. Annual sales exceeded $400 billion for the first time.

Google's core search and advertising business, grew 17% to $63.1 billion, reaching an estimated $61.3 billion. YouTube ads increased by 9% to $11.4 billion. Cloud revenues increased 48% to $17.7 billion, up from the average estimate of $16.3 billion, due to increased demand for computing power to train and run artificial intelligence models.

Alphabet's shares have risen 61 per cent over the past 12 months, pushing its market capitalisation over $4 trillion and surpassing Microsoft as the third largest company in the world.

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