On February 12, Sen. Elizabeth Warren sent a letter to Alphabet seeking details on its integration of the Gemini AI model into a shopping assistant, citing risks of consumer manipulation. The move highlights potential Federal Trade Commission or Congressional inquiries that could increase compliance costs and slow adoption.

Alphabet’s board approved 2026 capital expenditures of $175–185 billion, earmarked for data centers, AI hardware and Google Cloud expansion. While this investment aims to bolster Gemini development and enterprise services, it also heightens leverage and places pressure on near-term returns.

Alphabet’s capex sits within a projected $700 billion AI spending surge by the major tech players, where chipmaker Nvidia is expected to capture 40–50% of infrastructure purchases. This competitive landscape underscores Alphabet’s scale but also intensifies demand for scarce AI components and cost management challenges.