Yahoo Finance analysts noted that Alphabet's move reflects the company's confidence in the demand outlook for AI data centers over the next decade. Analysts believe that Alphabet, which already owns the two core businesses of Search and YouTube, is now building the computing layer required for the AI economy and leasing it out. Google Cloud's revenue reached $24.77 billion in Q2 FY2026, an 82% year-over-year increase. Despite the risks of increased capital expenditures (reaching $44.92 billion in Q2, a 100.14% year-over-year increase) and a doubling of long-term debt, the company has over $460 billion in cloud business backlog orders and an interest coverage ratio of 175x, indicating genuine demand and a balance sheet capable of supporting the investment.