Google parent company spending like a drunken sailor as capex triples over 2 years

Steven

Google parent company spending like a drunken sailor as capex triples over 2 years

Summary

Alphabet says it expects capital expenditure to reach $91–$93 billion in 2025 as it races to build datacentres to serve surging demand for AI and cloud services. That marks a dramatic rise from $32.25 billion in 2023 and is well above earlier guidance. The company reported Q3 revenue of $102.34 billion, up 16 percent year‑on‑year, and CFO Anat Ashkenazi said Alphabet will continue aggressive investment into 2026.

Key Points

  • Alphabet now expects 2025 capex of $91–$93bn, up sharply from $32.25bn in 2023.
  • Q3 revenue was $102.34bn (16% YoY), underpinning the drive for more datacentre capacity for AI workloads.
  • Microsoft is also ramping spending — Q1 FY2026 capex was $34.9bn, with half spent on short‑lived assets such as GPUs and CPUs.
  • Oracle is expanding datacentre capacity too and has launched large debt sales to fund the push (including an $18bn bond sale).
  • Investors reacted nervously: Alphabet shares fell about 3% in extended trading amid concerns the sector may overshoot near‑term AI demand.

Content summary

The article outlines a broad industry surge in infrastructure spending driven by AI. Alphabet’s capex targets have climbed markedly over two years as it prepares more compute and datacentre capacity; similar moves by Microsoft and Oracle show this is an industry‑wide buildout. Analysts and investors worry the pace and scale of spending may outstrip revenue growth if demand softens or adoption timelines slip.

Context and relevance

This is central to anyone tracking cloud, AI infrastructure, hyperscaler strategy or the semiconductor and power‑grid impacts of AI growth. Big capex commitments signal heavy demand for GPUs/TPUs, datacentre real estate and power; they also affect suppliers, energy markets and the risk profile for investors in tech. If the buildout overshoots, it could create short‑term volatility across cloud providers and chip makers.

Why should I read this?

Short version: major tech firms are pouring money into AI datacentres — fast. If you care about where cloud capacity, GPU demand, or corporate risk in the AI boom are headed, this is the kind of move that changes supplier roadmaps, energy demand and investor sentiment. We’ve skimmed the numbers and the mood for you — worth a quick read if you work in cloud, infra, fintech or investing.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/30/alphabet_capex/