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AI’s finally expensive enough to make Wall Street nervous

The Verge Elizabeth Lopatto Covered by 43 sources

Google increased its 2025 capital expenditure estimate to as much as $205 billion, up from the previous forecast of $190 billion, signaling unpredictable costs that now exceed revenue. The company's lower-bound estimate of $195 billion already exceeds what it previously projected as its maximum spending, a $15 billion swing that reflects inability to forecast AI infrastructure costs. Investors are growing concerned about the sustainability of such spending levels, particularly when capital outlays are outpacing revenue growth.

Why it matters

It's earnings season, and investors got an unpleasant surprise from Google: an increase on its spending estimate, to as much as $205 billion - from the last quarter's projection of up to $190 billion. Even the lower end of Google's new projected range - $195 billion - is much more than the company had previously […]

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