Alphabet ramps up AI spending amid power deals and legal scrutiny

what happened

TradingView reports that Google Cloud revenue reached $24.8 billion in Q2 2026, up 82% year over year. About 80% of Cloud customers use AI products, while nearly 90% of Fortune 100 companies use Gemini Enterprise. Alphabet spent $80.6 billion on capital expenditures in the first half of 2026, compared with $39.6 billion a year earlier; long-term debt stood at $98.2 billion on June 30.

Alphabet signed two long-term power agreements with Constellation totaling about 3,590 MW: a 20-year deal for an 890 MW nuclear uprate phased in from 2028 to 2032, and a 15-year agreement covering 2,700 MW of PJM supply. Shares fell after the deals were disclosed. Alphabet also plans a $20 billion–$25 billion U.S. debt offering in as many as 10 tranches, following a recent equity raise, to finance AI and cloud initiatives.

TradingView also lists several legal challenges: an early-stage securities-fraud class action over alleged misleading AI disclosures, a Stockholm claim by Prisjakt seeking about SEK 21.4 billion, a UK collective action seeking more than £1 billion over Google Play fees, and a Polish regulatory probe into licensing talks with publishers. Alphabet plans to buy Spirit Airlines’ internal dataset for $10 million, reportedly containing about 100 million emails and 500 million Teams messages; U.S. lawmakers have urged that employee information be removed. Waymo is recording more than 500,000 paid robotaxi rides weekly across 14 U.S. cities and targets 1 million weekly rides in 20 cities within the year. TradingView says the summary was AI-generated and may contain inaccuracies.

why it matters

The update links Alphabet’s rising AI-related power and capital needs with additional debt financing, a share-price decline after the power agreements and broader legal exposure. Investors are likely to focus on infrastructure funding, electricity access and potential liabilities from the disputes.

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