""The investments we're making in AI are delivering strong growth as evidenced by the record revenue and backlog growth in Google Cloud and strong performance in Google Services," Ashkenazi said."
""Looking ahead, these strong results reinforce our conviction to invest the capital required to continue to capture the AI opportunity. As a result we expect our 2027 capex to significantly increase compared to 2026.""
""Alphabet raised its full year 2026 capex spending guidance to $180 billion to $190 billion, up from $175 billion to $185 billion.""
""Ashkenazi said the enterprise cloud computing segment backlog is $462 billion, which nearly doubled this quarter compared to last quarter.""
Alphabet, Meta Platforms, and Microsoft announced substantial increases in AI-related capital expenditures, with estimates exceeding $600 billion by 2026. Meta's stock fell over 6%, while Alphabet's rose nearly 7%. Alphabet's growth in Google Cloud, driven by high demand for AI resources, was highlighted by CFO Anat Ashkenazi. The company raised its 2026 capex guidance to $180-$190 billion, with Google Cloud revenue growing 63% year-over-year. Ashkenazi noted a backlog of $462 billion, expecting over 50% to convert to revenue in the next two years.
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