Alphabet plans to double capital expenditure this year to invest in AI and computing capacity. Big Tech rivals are collectively spending over $500 billion on AI in 2026. Despite investor concerns, Google’s AI investments have led to a 76% stock surge since 2025.

Alphabet’s cloud business saw 48% growth in Q4, reaching $17.7 billion in revenue. CEO Sundar Pichai cites supply constraints as the company’s capex spend reaches a record high of $175-185 billion for 2026.

Google’s Gemini 3 AI model launch in November transformed it into a legitimate hyperscaler, alongside Amazon and Microsoft. Gemini has sold 8 million seats to 2,800 companies and secured a major cloud partnership with Apple. The cloud division’s growth outpaced Microsoft Azure for the first time in years.

Read more at Yahoo Finance: Alphabet says capital spending in 2026 could double, cloud business booms