Alphabet's Ruth Porat: AI spend to 'increase significantly' next year

Porat's remarks come as Alphabet is shepherding one of the largest corporate spending sprees ever. She has overseen Alphabet's investment vehicles, including GV, CapitalG, and its "Other Bets" ventures, since taking her current role in 2023, after nearly a decade as Alphabet's finance chief and a prior stint as Morgan Stanley's CFO.

The AI spending is already reshaping Alphabet's finances. Google Cloud's revenue climbed 82% to $24.8 billion, while its operating profit more than tripled to $8.8 billion. Porat pointed to Google's 2016 pivot from "mobile first" to "AI first" as the strategy that made this buildout possible, saying, "You must invest for long-term growth. By the time you need it, it's too late."

Porat also acknowledged growing resistance to data centers, saying about 71% of Americans don't want one built in their community, in line with a recent Gallup poll. She argued that opinion shifts when companies add energy capacity, protect affordability, and create local jobs, pointing to Google's investments in nuclear, geothermal, solar, and wind, and to a Skilled Trades Alliance Google cofounded with Ford, BlackRock, and Carhartt.