Alphabet: AI demand still outstrips supply despite raising 2026 CapEx to $195-205B

Published Jul 26, 06:00 PM UTC

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Alphabet Inc. reported that demand for its AI services continues to outpace available computing capacity, despite raising its 2026 capital expenditure outlook to $195-$205 billion. During the Q2 earnings call, CEO Sundar Pichai and CFO Anat Ashkenazi highlighted persistent supply constraints as token usage surges among developers and enterprise customers. The company plans to use third-party capacity as a bridge while expanding internal infrastructure. Alphabet beat Q2 estimates with $119.80 billion in revenue and $9.11 EPS. Wall Street is divided, with some analysts warning of a CapEx arms race and others citing strong cloud demand as justification for the investment.

Source

Yahoo FinanceWestern

Original headline: Alphabet Raises AI Spending But Still Can't Meet Demand: 'We're Still in a Supply Constraint Environment'

Original language: EN-US

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