Alphabet (GOOGL.US) AI arms race "bet" accelerates! Unfulfilled purchase commitments soar to $811 billion, computing power expansion enters a new stage.

Alphabet Inc.'s Class C parent company Alphabet (GOOGL.US, GOOG.US) latest disclosed regulatory filing shows that as of the end of June this year, the company has future purchase commitments totaling $811 billion, up nearly $500 billion from the end of March, highlighting the company's unprecedented pace in securing resources for AI infrastructure. These purchase commitments are separate from Alphabet's capital expenditure budget and mainly include expenses committed to be paid based on supply agreements and incomplete purchase orders. Of these, around $200.7 billion will expire within one year, making them short-term purchase commitments. Alphabet stated that these purchase commitments cover various areas including chips, data centers, power supply, inventory, and content licensing, reflecting the company's ongoing increase in AI infrastructure construction, early locking in of key resources to support the rapid expansion of its artificial intelligence business. This data also further signifies the ongoing escalation in the global tech giants' competition in AI infrastructure. Alphabet stated on Wednesday that it expects capital expenditures to reach $195 billion to $205 billion by 2026, continuing to heavily invest in AI computing infrastructure to counter fierce competition in the artificial intelligence field from competitors such as Microsoft Corporation (MSFT.US), Meta Platforms (META.US), and Amazon.com, Inc. (AMZN.US), and to continuously expand AI computing capabilities.