Google parent ends decade-long repurchase streak, redirecting funds to $175-$185 billion annual AI infrastructure investments.
Alphabet suspended share buybacks for the first time in a decade, ending a $300 billion repurchase program to fund AI expansion. The company spent $35.67 billion on capital expenditures in Q1 2026, up 107.44% year-over-year, as AI infrastructure costs nearly doubled.
Over the past five years, Alphabet repurchased more stock than any other major AI hyperscaler. The shift follows guidance for $175-$185 billion in annual capex, disclosed in Q4 2025 filings, alongside a $40 billion investment in rival AI firm Anthropic.
Management’s bet hinges on AI-driven profitability, requiring Google Cloud to sustain 70% year-over-year growth to justify abandoning shareholder returns.