Alphabet reported its 2026 second-quarter earnings on July 22, raising its 2026 capital expenditure forecast to between $195 billion and $205 billion, up from an earlier forecast of $180 billion to $190 billion, sending the stock down roughly 7%. CEO Sundar Pichai said the increased spending is necessary to meet customer demand for AI infrastructure and cloud capacity. Cloud revenue climbed 82% to $24.8 billion, and the Gemini App has 950 million monthly active users. Second-quarter spending increased 100% year over year to $44.9 billion. Alphabet announced an $80 billion equity raise in June, and free cash flow was negative in the second quarter, the first time since 2004. The company also sold $25 billion in investment-grade bonds on Aug. 6. Berkshire Hathaway, run by CEO Greg Abel, holds over $30 billion worth of Alphabet Class A and Class C shares. Supporters argue spending is necessary to remain a leader in AI, a market that could reach $1.4 trillion globally by 2032, according to Statista.