This Metric From Google Cloud Proves Its $185 Billion in Capital Spending This Year Is Worth It
Alphabet is investing heavily in AI computing resources.
This Metric From Google Cloud Proves Its $185 Billion in Capital Spending This Year Is Worth It
Overview
It's no secret that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is spending big in the artificial intelligence (AI) arms race. At the start of the year, it told investors it would spend from $175 billion to $185 billion on capital expenditures in 2026, primarily on data center construction. Since then, management has bumped that range to $180 billion to $190 billion. Those are mind-boggling figures, and the knee-jerk reaction among investors may be that the company is spending far too much.
However, I think that's the wrong way to look at it. There's one metric I've got my eye on that shows that this spending is logical, and indicates that the return on investment could make it all worth it.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
