tech
February 10, 2026
Alphabet calls out new AI-related risks, as it taps debt market to fund build-out
In Alphabet's annual report, the company said AI poses business risks, including its potential impact on advertising.
TL;DR
- Alphabet is planning to raise $20 billion from a U.S. dollar bond sale to fund its AI infrastructure.
- The company's annual financial report highlights potential risks of AI on its core advertising business and the possibility of 'excess capacity' from infrastructure investments.
- Alphabet is entering into significant leasing arrangements for compute capacity, which could increase costs and complexity.
- Capital expenditures for Alphabet are projected to be high, with a planned range of $185 billion for the current year.
- CEO Sundar Pichai identified 'compute capacity' as a key concern, along with power, land, and supply chain constraints.
- Alphabet, Microsoft, Meta, and Amazon are expected to significantly increase capital expenditures this year to support AI development.
- The Gemini AI app has over 750 million monthly active users.
- Despite potential risks of generative AI impacting internet search usage, Alphabet's ad revenue increased by 13.5% in the fourth quarter.
Continue reading the original article