"We offer the most extensive model portfolio in the world, and lead across text, vision, and image to video LM Arena leaderboards. The Gemini App now has 750 million monthly active users, and Gemini models process over 10 billion tokens per minute via direct API. That figure was 7 billion just one quarter earlier. The adoption curve is steep."
"Alphabet guided 2026 CapEx to $175 billion to $185 billion - nearly double the $91.4 billion spent in all of 2025. Free cash flow came in essentially flat year-over-year despite net income growing 32%. Given the increase in our CapEx investments in recent years, we expect the growth rate in 2026 depreciation to accelerate in Q1 and meaningfully increase for the full year."
Alphabet achieved record quarterly revenue of $113.83 billion in Q4 2025, up 18% year-over-year, with Google Cloud growing 48% to $17.664 billion and a $240 billion backlog. The Gemini app reached 750 million monthly active users, processing over 10 billion tokens per minute via API. However, the company guided 2026 CapEx to $175-185 billion, nearly double 2025's $91.4 billion spending. Free cash flow remained flat despite 32% net income growth, with accelerating depreciation expected throughout 2026. This massive infrastructure investment coincides with intensifying competition from Anthropic and OpenAI for enterprise customers, creating tension between growth opportunity and near-term profitability concerns.
#ai-infrastructure-investment #capital-expenditure #google-cloud-growth #competitive-pressure #stock-valuation
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