Google is on the hook for $811 billion in contracted spending at the end of June, nearly half a billion dollars higher than three months ago, according to Bloomberg News.
This means its AI infrastructure bet extends far beyond the capital spending reported in its quarterly earnings, Bloomberg reported, citing an Alphabet SEC filing.
The obligations cover purchases under supply agreements and open orders, including chips, data centers, electricity, inventory and content licenses. About $200.7 billion is due within the next year, according to Alphabet’s quarterly filing.
The commitments are separate from Alphabet’s capital expenditures, which represent money spent on assets during a particular reporting period. In effect, the $811 billion figure shows how much capacity and equipment Google has already agreed to buy in the future, while capital expenditures show when some of that spending reaches its financial statements.
This week, Alphabet raised its 2026 capital expenditure forecast to between $195 billion and $205 billion, up from its previous estimate of $190 billion.
The spending is supporting rapid growth at Google Cloud, where second-quarter revenue rose 82% to $24.8 billion. Alphabet’s overall revenue increased 24% to $119.8 billion, but the infrastructure buildout contributed to negative free cash flow of $5.9 billion for the quarter – a first for Google.
Alphabet shares fell as the increased spending forecast overshadowed strong revenue growth.