Google to Allocate $185B AI Spending to Curb ChatGPT Threat (GOOGL, ALPHAB)

Google plans the largest capital expenditure in history, allocating $185 billion to expand AI, data centers, semiconductors, and energy infrastructure, doubling its CAPEX to counter competition from ChatGPT and maintain market leadership. Alphabet reported revenue of $400 billion and net income of $132 billion in 2025, up 15% and 32%, respectively. The spending follows a “code red” warning about ChatGPT in 2023 and aims to meet rising customer demand for AI and cloud services. Global tech giants are forecast to invest over $500 billion in AI this year, with analysts estimating $7 trillion in data center and power infrastructure spending through 2030.