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Key FactsAlphabet Boosts AI Spending with Cloud Growth Surge
Feb 5, 2026 · Reading time: ~45 sec.
Summary created with AI assistance · Source: reuters.com
  • Alphabet intends to increase capital spending to $175-$185 billion in 2026, more than doubling the 2025 budget.

  • Google Cloud's revenue rose 48% in Q4 2025, achieving its fastest growth rate in over four years and outpacing Azure.

  • The Gemini 3 AI model now serves 750 million monthly users, enhancing advertising through complex search query monetization.

  • Ongoing capacity constraints have not deterred Alphabet from expanding AI infrastructure to maintain competitive advantage.
  • We are seeing our AI investments and infrastructure drive revenue and growth across the board.
    — CEO Sundar Pichai said this during a conference call with analysts.