Why is Google spending up to $205 billion on AI? Inside Alphabet’s biggest investment yet

Google’s parent company Alphabet has increased its AI spending plan for 2026. It now expects to spend between $195 billion and $205 billion, up from its earlier estimate of $180-$190 billion and up from as much as $190 billion previously. This is the biggest capital spending plan in Alphabet’s history. The midpoint of the new forecast is $200 billion, showing how serious the company is about winning the AI race.

The money will mainly go into building more AI infrastructure.