Google’s parent Alphabet reported a sharp rise in AI spending to $51.3bn in Q3 2026, driving cash burn to a record ‑$9.1bn and sending shares down over 8% in after‑hours trading. The surge in capital expenditure, now projected to reach $205bn for the year, has forced Alphabet to raise tens of billions in debt and plan an $85bn share sale, its biggest equity raise in two decades. Core search revenue missed expectations at $63.4bn, while overall group revenue fell short of forecasts at $127.6bn.
Net income dropped to $26.2bn, impacted by an $8.7bn loss on equity stakes, including a dip in SpaceX. Operating income rose 30% to $40.6bn, still below Wall Street’s $43.2bn target. Cloud revenue doubled to $30.7bn, outpacing the broader slowdown, as Google’s “full‑stack” AI strategy gains traction.
CFO Anat Ashkenazi warned capex could hit $73.1bn in Q4, underscoring the aggressive push into AI despite market volatility.
Source: Financial Times Companies · Summarized by HeadlinesBriefing