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Alphabet Inc. shares slipped after the company reported fourth-quarter revenue that beat expectations but said it plans to spend far more than investors expected in 2026.

The Google parent said it will spend $175 billion to $185 billion this year, compared with the $119.5 billion analysts expected. The company’s fourth-quarter sales, excluding partner payouts, were $97.23 billion, surpassing the $95.2 billion expected on average by analysts, according to data compiled by Bloomberg.

Chief Executive Officer Sundar Pichai said the investments are paying off. “We’re seeing our AI investments and infrastructure drive revenue and growth across the board,” he said Wednesday in the statement. “Search saw more usage than ever before, with AI continuing to drive an expansionary moment.” Google Cloud revenue was $17.7 billion, beating the $16.2 billion analysts expected.

Google has raced to reinvent its business for the AI age, working to keep consumers in the habit of going to its search page even when they could also go to chatbots from rivals like OpenAI. The company has quickly improved its Gemini model and integrated it throughout its products — an effort that has required massive investment in data centers and chips for model improvement and cloud customers.

The industry has leaned on Google’s progress. Google is supplying up to one million of its specialized AI chips to Anthropic, cementing Google’s position as a key infrastructure provider in the AI space. Gemini will also be a provider of AI for Siri on Apple Inc.’s iPhones. The Gemini app has 750 million monthly active users.

Today's show features:

• Bloomberg Intelligence Senior Global Head of Technology Research Mandeep Singh and reacts to quarterly earnings from Alphabet
• Dan Ives, Global Head of Technology Research at Wedbush Securities, on Alphabet earnings and why he sees the world's biggest software companies weathering the storm brought on by artificial intelligence
• Bloomberg Economics Chief Geoeconomics Analyst Jennifer Welch on Wednesday’s call between President Donald Trump and China’s Xi Jinping, and strained talks between the US and Iran
• Axel Merk, President and Chief Investment Officer of Merk Investments, on the precious metals trade and the potential market impact of a Kevin Warsh-led Federal Reserve

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