Strong AI demand helped power Alphabet’s financial results, as both the core advertising and cloud computing businesses of the Google parent beat revenue expectations. Despite whispers of concerns over a developing AI bubble, the search giant boosted its projected capital expenditures for the year to between $91 billion and $93 billion.

“We are investing to meet customer demand and capitalize on the growing opportunities across the company,” CEO Sundar Pichai said in Alphabet’s earnings release.

Alphabet, which spent $52.5 billion in 2024, had already shocked Wall Street twice this year with its aggressive spending ambitions, first declaring a $75 billion outlay in February, and then boosting the projection to $85 billion in July. Shares of the company rose 6% in extended trading.

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