Alphabet boosts AI capex to $350B+, launches new Gemini model, faces UK Play Store regulatory threat
GOOG has more than doubled off its 52-week low of $173.88.
Summary
Alphabet is significantly increasing its capital expenditure forecasts for 2027 and 2028 to $350 billion and $375 billion respectively, primarily for AI and cloud infrastructure. This follows the company's earlier announcement of a $700 billion capex plan for 2026, reinforcing a narrative of aggressive investment in AI. The company also launched Nano Banana 2 Lite, a cheaper Gemini image generation model. However, the UK regulator proposed changes to Google Play that could allow developers to bypass Google's billing system, posing a material risk to app store revenue. Additionally, its Waymo unit recalled nearly 3,900 robotaxis due to a software bug. The CMA decision on Google Play changes is expected later this year.
At the time of this announcement, GOOG was trading at $353.22 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $173.88 to $404.47. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Wiseek News.