Alphabet Spent $45 Billion on Artificial Intelligence Last Quarter, and It Already Plans to Spend $811 Billion More
Management's making a huge bet on the continued demand for AI.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has some investors worried about how much it's spending on artificial intelligence (AI). In its second-quarter report, the company said it had negative free cash flow for the first time since going public way back in 2004, after spending $45 billion on capital expenditures last quarter. That's double what it spent a year ago, and it plans to spend even more over the next few years.
Management raised its full-year 2026 capital expenditure budget to between $195 billion and $205 billion alongside the earnings release. It also said capex will "increase significantly in 2027." In fact, a brief note in the company's 10-Q filing with the SEC revealed that it's already committed to spending another $811 billion, mostly on artificial intelligence.
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Originally published at www.fool.com.