Alphabet President Ruth Porat on how Google is funding AI to win long term, and the biggest risks ahead
Source: Fortune ·
Google is spending about $200 billion on its AI buildout this year, Porat confirmed at Fortune's Most Powerful Women Summit on Monday, and the peak is still around the corner.
From the source
Alphabet is spending roughly $200 billion this year to build out its AI capacity, and the company’s president and chief investment officer reiterated Google’s plan next year for the bill to be even more substantial. Alphabet expects capital expenditures (capex) to “increase significantly” next year, Ruth Porat said Monday at Fortune’s Most Powerful Women Summit in Santa Barbara, Calif., adding that the company remains “capacity constrained” as demand for compute grows. “The demand for compute—because of the value that our partners are seeing in the enterprise, in governments, what we’re seeing across our platform—suggests that we’re in the buildout here now,” she told Fortune Editor-in-Chief Alyson Shontell. When pressed as to where exactly the industry is in the long term timeline of funding the AI building, and if we are in the peak of spending, Porat replied, “We do see this as an opportunity that extends for quite some time.” Porat, No. 11 on Fortune’s 2026 Most Powerful Women…