Alphabet President Ruth Porat on how Google is funding AI to win long term, and the biggest risks ahead
Google is spending about $200 billion on its AI buildout this year, Porat confirmed at Fortune's Most Powerful Women Summit on Monday, and the peak is still around the corner.
Alphabet, the parent company of Google, is set to spend a staggering $200 billion this year to bolster its AI capabilities, with president and chief investment officer Ruth Porat forecasting an even larger expenditure next year. Porat, speaking at Fortune's Most Powerful Women Summit, highlighted that the company remains "capacity constrained" due to the growing demand for compute power and the value partners are seeing in AI-driven enterprise solutions.
Despite recent concerns over the sustainability of AI spending, Porat remains optimistic, emphasizing that this investment will extend for a considerable period. She argues that focusing on delivering value to partners and efficiently providing compute capacity is crucial for achieving attractive returns.
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