Alphabet's Rapidly Growing $50 Billion Business Is a Huge Advantage in the AI Arms Race

Key Points Alphabet's custom AI accelerator chips are seeing massive demand. On top of that, the payback period for deploying its TPU systems is extremely fast. That means cash returns should balloon over the next few years. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has come under pressure lately as management pushes forward with its massive AI spending plans. Not only does it expect to spend around $200 billion in capital expenditures this year and significantly more next year, it also has $811 billion in purchase commitments and contractual obligations on the books, most of which it will pay by 2030.