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Google parent Alphabet predicts a sharp surge in 2026 capital spending on AI

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Revenue at Google Cloud grew 48% to $17.7 billion in the fourth quarter ended December, beating analyst’s expectations. Alphabet said on Wednesday it was targeting capital expenditure of $175 billion to $185 billion this year, in yet another aggressive ramp-up in spending from the Google parent as it deepens its investments to push ahead in the AI race.