"Supply Can't Keep Up With Demand"...Google Raises AI Investment to $205 Billion
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- 2026-07-23 06:27:48
- Updated
- 2026-07-23 06:27:48
On the 22nd, local time, Google said it expects annual capital expenditures this year to reach between $195 billion and $205 billion. That is higher than the previous quarter's forecast of up to $190 billion.
Anat Ashkenazi, Chief Financial Officer (CFO), explained during the earnings conference call that the company is increasing investment because it is speeding up the supply of data center and computing capacity to meet rapidly rising AI demand.
She said, "Supply is still not keeping up with demand," adding, "We have been saying the same thing for several quarters, and we are seeing very strong demand not only from external Cloud customers but across Google's internal businesses as well."
Last quarter, Google also raised its annual capital expenditure outlook to as much as $190 billion, saying it would sharply expand investment in AI infrastructure. This time, it lifted the forecast again, making clear that it will accelerate the expansion of AI data centers and servers even further.
Ashkenazi also suggested that the company will continue its investment expansion for the time being. She said, "We will keep investing as long as the return on investment remains sufficiently attractive," reaffirming that AI infrastructure spending is a key part of Google's medium- to long-term growth strategy.
The latest move comes as computing resources remain in short supply amid the spread of AI services, while big tech companies such as Microsoft, Meta Platforms, and Amazon compete to invest tens of billions of dollars in data centers. Google also reaffirmed its commitment to aggressive capital spending in line with rising AI demand.
[email protected] Reporter Lee Byung-chul Reporter