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Alphabet reported its first-ever $100 billion quarter, fueled by a 34% surge in Google Cloud revenue and booming AI demand. The tech giant also announced an increase in expected capital expenditures for the fiscal year of 2025. CNBC reports: "With the growth across our business and demand from Cloud customers, we now expect 2025 capital expenditures to be in a range of $91 billion to $93 billion," the company said in its earnings report (PDF) Wednesday. "Looking out to 2026, we expect a significant increase in CapEx and will provide more detail on our fourth quarter earnings call," said finance chief Anat Ashkenazi on the earnings call with investors Wednesday. Earlier this year, the company increased its capital expenditure expectation from $75 billion to $85 billion. Most of that goes toward technical infrastructure such as data centers. The latest earnings show the company is seeing rising demand for its AI services, which largely sit in its cloud unit. It also shows the company is continuing to spend more to try and build out more infrastructure to accomodate the backlog of customer requests. "We continue to drive strong growth in new businesses. Google Cloud accelerated, ending the quarter with $155 billion in backlog," CEO Sundar Pichai said in the earnings release.

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