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Nebius and CoreWeave shares rise after Google flags AI compute limits
Alphabet raised its 2026 capital expenditure outlook to $195 billion to $205 billion and said it will lean on third-party computing capacity as a temporary bridge.
Alphabet, the parent of Google, raised its 2026 capital expenditure forecast again to between $195 billion and $205 billion, reinforcing how aggressively hyperscalers are investing to meet demand tied to the AI boom, according to Yahoo Finance.
During the company’s earnings call, CFO Anat Ashkenazi said Google plans to expand its use of third-party computing capacity while additional in-house infrastructure comes online. The point, as framed by the outlet, is that AI compute demand is growing faster than hyperscalers can build capacity on their own.
In the wake of the commentary, Yahoo Finance said Wall Street quickly connected the message to the broader “neocloud” buildout and that shares of Nebius Group and CoreWeave climbed after Alphabet’s remarks.
Nebius Group is described as an AI infrastructure company building a full-stack cloud platform for AI applications, including large-scale GPU clusters and AI cloud services, while CoreWeave is positioned by the outlet as part of the specialized cloud infrastructure push for GPU capacity.