Alphabet Raises AI Spending But Still Can’t Meet Demand: ‘We’re Still in a Supply Constraint Environment’

Alphabet Inc. announced an increase to its capital expenditure forecast during its second-quarter earnings period, raising the outlook to $195 billion to $205 billion from a prior range of $180 billion to $190 billion. The adjustment reflected the company’s assessment of ongoing infrastructure needs as it expands its artificial intelligence and cloud service offerings.
During the earnings call, company leadership outlined the dynamics driving the increased investment. Chief Executive Offi