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Google plans to double spending amid the AI race

A look at why AI capex is rising and how it changes the competitive map for cloud and consumer products.

The New York Times
Money

The AI race is increasingly measured in data centers, GPUs, and power contracts—not just models. For incumbents, that makes AI strategy inseparable from capital allocation.

What to know

  • Capex is a competitive signal: it can scare markets short-term but deter rivals long-term.
  • “Who pays for power” is turning into a first-order business constraint for AI products.
  • Watch for second-order effects on suppliers, cloud pricing, and enterprise budgets.

Source: https://www.nytimes.com/2026/02/04/business/google-earnings-ai.html

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