Google is estimated to spend up to 185 billion dollars in 2026 and it is the reason why the search do not have to die because of the artificial intelligence.
Over the years, the critics have cautioned that the AI chatbots would render Google Search redundant. In the case where users are able to access answers at will within a second, the argument would be that traditional search would fail.
The recent earnings report of Google is moving in the reverse direction.
In Alphabet, the expenses of capital spending are projected to range between 175 and 185 billion in 2026, which is among the largest investments in infrastructure that has ever been announced by a technology company. Such amount of expenditure sends a clear message. Google is not thinking that search is being replaced by AI. It thinks that search is good enough to invest the next step of AI.
The search revenue continues to increase rapidly.
Alphabet announced a figure of 402.8 billion in revenue in 2025, which is the first year when the firm has earned over 400 billion dollars. The growth of search revenue was 17 percent annually, and it comprised of approximately 72 percent of total revenue in the last quarter.
That growth matters. In case AI is already cannibalizing search demand, it would reflect here first. Rather, the use of search hit new all-time highs and AI functionalities within Search facilitated increased interaction, as opposed to reduced search queries.
Search is the most influential asset of Google and is making it more cash than ever.
The signal investors which are worth 185 billion dollars should not be overlooked.
A quote by executives was not the most telling thing in the earnings release by Google. It was a line item.
Google anticipates spending 175-185 billion on capital in 2026. That it is investing in data centers, specialized AI chips, and networking as well as the physical infrastructure to execute AI on a global scale.
This shift can already be observed in the balance sheet of Alphabet. There is an increase in property and equipment by almost 247 billion dollars per annum as compared to 171 billion. This does not count as experimental spending. It is a long-term buildout.
Firms that are preparing to be disrupted reduce. Those companies who are anticipating a growth make aggressive investments. Google is evidently doing the latter.
The businesses of Google are actually becoming stronger, not becoming weak because of ai.
During an earnings call, the CEO Sundar Pichai stated that AI investments were already generating revenues throughout the company and that the company was spending more money to be able to fulfill demand.
The most obvious evidence is Google Cloud.
Cloud revenue increased by 48 percent on an annual basis, and at the end of 2025, it had a run rate of more than $70 billion. This is propelled by AI infrastructure and AI-driven services, and cloud operating revenue increased more than twice, which is a long-standing issue with profitability.
Meanwhile, everything is now financed by search. The infrastructure supporting AI in Search, Cloud, YouTube and consumer products is being funded by high-margin advertising revenue.
Youtube and subscriptions are stabilizing.
In 2025, YouTube made over 60 billion dollars in ad and subscription revenues. Alphabet now boasts more than 325 million subscribers on such services as YouTube Premium and Google One.
That recurrent revenue decreases the dependence on advertising cycles and provides Google with enough financial resources to invest at a scale. It also supports the wider ecosystem which retains users within the Google products.
Google believes that search and AI will co-evolve.
Google is cognizant of the fact that behavior of users is changing. Interfaces of conversation are important. AI assistants matter. However, the company is acting out of supremacy.
Google has no rival that has the global distribution, data, infrastructure, and cash flow. AI is not a replacement of search. Smart, integration, and more valuable are becoming a reality.
It only makes sense to spend almost 185 billion on infrastructure development when Google believes that search will continue to be a cash-generating engine in the next years.
Despite all the conjecture that AI will kill search, the moves of Google are indicative of the contrary. Its AI ambitions are based on search.
