Alphabet Plans $175–185B AI Capex in 2026 as Berkshire Takes $10B Stake
Goldman Sachs now projects the four hyperscalers will invest $5.3 trillion in AI capex from FY2025–FY2030, with Alphabet targeting $175–185 billion in 2026 spending. Berkshire Hathaway invested $10 billion in Alphabet’s $80 billion share offering at a 6–8% discount, underscoring confidence in Google’s AI infrastructure push.
1. Hyperscaler AI Capex Projections
Goldman Sachs has increased its aggregate AI infrastructure capex forecast for Meta, Microsoft, Amazon and Alphabet to $5.3 trillion between fiscal years 2025 and 2030, up from a prior estimate of $4.5 trillion. This jump reflects accelerated data center, compute and power build-outs as each company vies for AI leadership.
2. Alphabet’s 2026 Capital Expenditure Plan
Alphabet is earmarking $175–185 billion for capital expenditures in 2026, a near 77% increase from its 2025 outlay. The bulk of this investment will fund new data centers, AI servers and networking gear to support its growing cloud and AI services.
3. Berkshire Hathaway’s $10 Billion Commitment
Berkshire Hathaway purchased $10 billion of Alphabet’s $80 billion new share issue at a 6–8% discount, representing a significant endorsement of the company’s long-term AI infrastructure strategy. This strategic investment provides Alphabet with additional balance sheet flexibility for its capex ramp.
4. Market Implications and Investor Expectations
These massive outlays heighten pressure on Google to translate infrastructure spending into accelerated revenue and profit growth. Investor confidence, as evidenced by Berkshire’s participation, sets a high bar for timely returns and efficient execution of AI projects.
