Google is ramping up spending as it races to lead in artificial intelligence. The tech giant plans to spend up to $185 billion on capital projects this year, double what it spent in 2025. The money will fund AI data centers across the country to support its Gemini system.
According to The New York Times, Alphabet reported strong fourth-quarter results on Wednesday. Revenue climbed 18 percent to $113.8 billion in the quarter that ended in December. Annual revenue passed $400 billion for the first time last year. Profits rose 30 percent to $34.5 billion in the final quarter.
Gemini System Drives Growth
Google’s AI system Gemini has moved ahead of rivals. The technology now boosts YouTube viewership through better recommendations. It also increases search traffic by giving users quick answers.
Sundar Pichai, Alphabet’s chief executive, said the company is seeing AI investments drive revenue and growth. The results beat Wall Street forecasts of $111 billion in sales and $32 billion in profit.
Stock Holds Steady After Announcement
Alphabet shares fell slightly in after-hours trading. The stock has gained more than $600 billion in value over the past three months. The company’s market value now stands at $4.02 trillion.
Investors Watch Spending Closely
Tech companies face careful scrutiny from investors. They want firms to spend enough on data centers to support AI growth. But they also want companies to protect their profit margins.
Google spent just over $90 billion on capital projects last year. This year’s planned spending of $175 billion to $185 billion marks a big jump. The company is building computing sites to power Gemini and ensure wide distribution.
The increase puts Google alongside Apple and Amazon as companies with annual revenue above $400 billion. Apple achieves this through high-priced iPhone sales. Amazon does it through its large e-commerce business. Google relies on advertising and cloud services.
