Alphabet Inc. said demand for artificial intelligence products boosted quarterly sales, and now requires an extreme increase in capital spending — heightening pressure on the company to justify the cost of keeping up in the AI race.

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The company increased that figure on Wednesday to $85 billion, saying it was raising it due to “strong and growing demand for our Cloud products and services.” The company expects to further increase capital expenditures in 2026, Alphabet finance chief Anat Ashkenazi said on an earnings call.

Most leaders in the tech industry owe their wealth to founding equity stakes in their platforms, which Google’s Sundar Pichai does not have.

By Nikhil Sharma and Pranav Kashyap (Reuters) -Wall Street futures were mixed on Thursday as investors sifted through a flurry of earnings from heavyweights like Alphabet and Tesla, all while keeping a watchful eye on U.

Search giant Alphabet strongly beat estimates for quarterly revenue and profit on the back of new AI features and a steady digital advertising market.

Google parent Alphabet reported second-quarter revenue and profit that beat analysts' expectations, driven by rising cloud and search revenue.

Alphabet shares rose more than 3% in early trading on Thursday as the Google parent's earnings underscored a key message to investors: AI spending is climbing, but so are the returns.

For me, the main stock story on Opening Bid today was Alphabet. The numbers were so strong that one has to wonder why the stock didn't gain more — especially considering shares trade at a discounted forward PE ratio relative to the S&P 500 ( ^GSPC ).

We’ll continue investing in the people, talent and compute needed to make sure that we are set up for the opportunity ahead,” said CEO Sundar Pichai.

Alphabet is growing fast in core and cloud segments, though rising AI capex is pressuring free cash flow and returns. Learn why GOOGL stock is a buy.