Alphabet, Google's parent company, has released an earnings report that beat Wall Street's forecasts for both profit and revenue. For the first time, the company's annual revenue climbed above $400 billion. To keep up this momentum, Alphabet plans to boost its capital spending significantly in 2026. This investment in AI infrastructure, the physical hardware and data centers needed to run artificial intelligence, far exceeds what analysts had predicted. Alphabet CEO Sundar Pichai said that these AI investments are fueling growth and bringing in more money. He also pointed out that Gemini, the company's AI assistant, has seen a major spike in its number of users.