If You Think Alphabet’s AI Spending Is High Now, Just Wait for 2028

Google parent Alphabet has been going all-in on AI spending and it has tested some investors’ nerves, especially after a sizeable equity raise earlier in June to fund upcoming capital expenditures. It’s a prime example of how Big Tech’s AI ambitions are outstripping operating cash flows and forcing companies to tap debt and equity markets. On the heels of Alphabet’s $85 billion offering, Morgan Stanley believes Wall Street should brace itself for the company to spend $375 billion in 2028.