Alphabet, the parent of Google, said today its 2026 capital expenditures should range from $175 billion to $185 billion, with much of it going to AI investments.
That’s more than what it spent in the three prior years combined, according to Bloomberg News. The stock fell 7.4% amid heavy trading and is sinking by 5.2% after-hours.
Sundar Pichai, who is CEO of both Alphabet and Google, believes the spending was justified as it builds out data centers in the AI era. “We’re seeing our AI investments and infrastructure drive revenue and growth across the board,” he said today in a blog post. “Search saw more usage than ever before, with AI continuing to drive an expansionary moment.”
Google has been incorporating Gemini into all of its products, such as Chrome and Workspace. The Gemini app had 750 million active users in Q4 2025, up from 650 million in the previous quarter.
Alphabet made the announcement as part of its Q4 earnings release. The company said revenue reached $113.83 billion in the quarter, beating Wall Street estimates. Earnings came to $2.82 per share, compared to the Street’s projection of $2.63.