{"id":6593,"date":"2026-10-13T01:54:07","date_gmt":"2026-10-13T01:54:07","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=6593"},"modified":"2026-10-13T01:54:07","modified_gmt":"2026-10-13T01:54:07","slug":"alphabet-president-ruth-porat-on-how-google-is-funding-ai-to-win-long-term-and-the-risks-ahead","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=6593","title":{"rendered":"Alphabet President Ruth Porat on how Google is funding AI to win long term, and the risks ahead"},"content":{"rendered":"

<\/p>\n

Alphabet is spending roughly $200 billion this year to build out its AI capacity, and the company\u2019s president and chief investment officer reiterated Google\u2019s plan next year for the bill to be even more substantial.<\/p>\n

\n

Alphabet expects capital expenditures (capex) to \u201cincrease significantly\u201d next year, Ruth Porat said Monday at Fortune<\/em>\u2019s Most Powerful Women Summit in Santa Barbara, Calif., adding that the company remains \u201ccapacity constrained\u201d as demand for compute grows.<\/p>\n

\u201cThe demand for compute\u2014because of the value that our partners are seeing in the enterprise, in governments, what we\u2019re seeing across our platform\u2014suggests that we\u2019re in the buildout here now,\u201d she told Fortune<\/em> Editor-in-Chief Alyson Shontell. When pressed as to where exactly the industry is in the long term timeline of funding the AI building, and if we are in the peak of spending, Porat replied, \u201cWe do see this as an opportunity that extends for quite some time.\u201d<\/p>\n

Porat, No. 11 on Fortune\u2019s 2026 Most Powerful Women list, is shepherding one of the largest corporate spending sprees ever. Before taking her current role in 2023, she spent nearly a decade as Alphabet\u2019s finance chief, and before that she was Morgan Stanley\u2019s CFO. Porat oversees Alphabet\u2019s investment vehicles, including its capital arms GV and CapitalG, as well as its \u201cOther Bets\u201d ventures, and real estate investments.<\/p>\n

In July, Alphabet lifted its 2026 capex outlook to as much as $205 billion, and the stock dropped more than 6% the following day, a sign of how hard Wall Street is pushing for proof the massive spending will pay off for investors.\u00a0\u00a0The AI spending is already reshaping Alphabet\u2019s finances. Capital expenditures hit $44.9 billion in the second quarter, \u201cwith the vast majority of this spent in technical infrastructure to support our investments in AI,\u201d Alphabet CFO Anat Ashkenazi said during the company\u2019s Q2 earnings call. That pushed free cash flow to negative $5.9 billion, the first time Alphabet\u2019s quarterly cash flow had dipped below zero in its more than 20 years as a public company. Meanwhile, Google Cloud\u2019s revenue climbed 82% to $24.8 billion, while its operating profit more than tripled to $8.8 billion.<\/p>\n

Shontell questioned Porat about a recent report from Jefferies global head of equity strategy Chris Wood, who argued the AI boom will most likely end in massive capital destruction in the U.S. as cheaper open-source Chinese models take market share. Porat disagreed.<\/p>\n

\u201cIt\u2019s illogical to say that we\u2019re in a capacity-constrained position because there\u2019s such strong demand for the insight and the ability to improve business and government, and yet you can\u2019t drive a return on it,\u201d she told Fortune<\/em>.<\/p>\n

To earn an attractive return, Porat said, companies need to focus on two things: \u201cOne, what is the value that we add to partners so that you can actually deliver attractive revenue growth, and the other is how efficiently do we deliver that compute capacity.\u201d <\/p>\n

When asked what winning looks like for Alphabet, Porat pointed to responsible deployment rather than ranking who is best.<\/p>\n

\u201cThe thing that is true throughout history is anything that is not built for the long run won\u2019t endure for the long run,\u201d Porat said. She noted that Alphabet\u2019s capex spending is itself a payoff from strategy devised years ago, starting with Google\u2019s 2016 pivot from \u201cmobile first\u201d to \u201cAI first.\u201d<\/p>\n

\u201cYou must invest for long-term growth,\u201d she added. \u201cBy the time you need it, it\u2019s too late.\u201d<\/p>\n

Porat has repeatedly made the bullish case for AI\u2019s payoff. At an Economic Club of New York event in June, Porat called data centers a \u201cjob creator,\u201d Fortune<\/em>\u2019s Most Powerful Women Editor Emma Hinchliffe wrote. She also argued data centers have helped slow energy price growth by spreading fixed costs across a larger base. And at Fortune\u2019s Global Forum in Riyadh last year, she described AI as \u201cso much more than a chatbot,\u201d and said \u201cwe should be able to cure cancer in our lifetime.\u201d<\/p>\n

To be sure, Porat acknowledged growing resistance to data centers, saying about 71% of Americans don\u2019t want one built in their community, in line with a recent Gallup poll. But she argued that opinion shifts when companies add energy capacity, protect affordability, and create local jobs. She pointed to Google\u2019s investments in nuclear, geothermal, solar, and wind, and to a Skilled Trades Alliance that Google cofounded with Ford, BlackRock, and Carhartt to train electricians, welders, and other workers the buildout needs.<\/p>\n

\u201cWe have to solve the downside anxiety. It\u2019s real. It\u2019s substantive,\u201d Porat said. \u201cThat\u2019s why I say, if we can [build AI], we must.\u201d<\/p>\n

Porat has the veteran finance experience to help forge ahead.<\/p>\n

During the 2008 financial crisis, she worked closely with then-Treasury Secretary Hank Paulson, leading the Morgan Stanley team that advised the Treasury Department on Fannie Mae and Freddie Mac and the New York Federal Reserve on AIG. The key lesson from that crisis, she said Monday, was to \u201cidentify your greatest source of vulnerability early and fortify against it, because you can\u2019t address it in the moment.\u201d <\/p>\n

For companies today, she said, that vulnerability is falling behind on AI.<\/p>\n

\u201cBecause if anyone is connecting with your customers in ways that you are not \u2026 You\u2019re at a competitive disadvantage.\u201d<\/p>\n<\/div>\n

#Alphabet #President #Ruth #Porat #Google #funding #win #long #term #risks #ahead<\/p>\n","protected":false},"excerpt":{"rendered":"

Alphabet is spending roughly $… <\/p>\n","protected":false},"author":1,"featured_media":6594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[1016,678,705,636,3201,9698,1209,1951,9697,9696,7226,2940,167],"class_list":["post-6593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-ahead","tag-alphabet","tag-funding","tag-google","tag-long","tag-porat","tag-president","tag-risks","tag-ruth","tag-ruth-porat","tag-term","tag-win","tag-women"],"yoast_head":"\nAlphabet President Ruth Porat on how Google is funding AI to win long term, and the risks ahead - Finance News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vaultinsider.top\/?p=6593\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alphabet President Ruth Porat on how Google is funding AI to win long term, and the risks ahead - 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