India, July 23 -- Google's parent company Alphabet has increased its AI spending plan for 2026. It now expects to spend between $195 billion and $205 billion, up from its earlier estimate of $180-$190 billion and up from as much as $190 billion previously. This is the biggest capital spending plan in Alphabet's history. The midpoint of the new forecast is $200 billion, showing how serious the company is about winning the AI race.

The money will mainly go into building more AI infrastructure. This includes new data centres, powerful computer chips, servers and other computing systems needed to run AI models like Gemini. Google says it is spending more because demand for AI is growing much faster than expected, according to multiple news r...