Alphabet is on track to invest approximately $200 billion this year in AI infrastructure, with spending expected to increase significantly next year. Company president and CFO Ruth Porat said Monday that demand for compute remains robust and that Google stays capacity constrained. Capital expenditures reached $44.9 billion in the second quarter, pushing free cash flow to negative $5.9 billion for the first time in the company’s more than 20 years as a public company. Despite the massive cash outflows, Google Cloud posted strong results with revenue climbing 82% to $24.8 billion and operating profit more than tripling to $8.8 billion. Porat is betting on a long-term strategy and dismissed concerns about AI leading to massive capital destruction.
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