Alphabet Raises AI Spending

It's been Zynga bringing Wall Street to Main Street. Alphabet posted record cloud growth, but investor concerns intensified over delays to its flagship AI model and a $15 billion increase in 2026 capital spending plans, according to Reuters. Alphabet raised its 2026 capital spending forecast to between $195 billion and $205 billion, up from its previous range of $180 billion to $190 billion. Alphabet reported second quarter adjusted earnings of 2.85 per share, below Wall Street estimates of 2.89. Revenue rose to $119.8 billion, beating expectations of $116.9 billion. Google Cloud Revenue jumped 82% to $24.8 billion, marking its strongest quarter of growth. Advertising revenue reached $81.6 billion above estimates. The company also reported negative free cash flow of $5.9 billion. Investors questioned rising AI spending and delays to Gemini 3.5 Pro. CEO Sundar Pichai said Google is testing that model while training Gemini 4. Shares fell about 3% in extended trading on Wednesday. For all things money, visit Benzinga.com.