Google shares fell after the company raised its full-year capital expenditure guidance to as much as $205 billion, reflecting a larger planned investment in artificial intelligence infrastructure.

The expanded spending plan prompted investor concerns about rising costs before AI-related projects produce meaningful financial returns. Capital expenditure is closely watched because it represents spending on long-lived assets, and a higher outlook can affect how investors assess future cash generation, depreciation expenses, and the timeline for returns on infrastructure buildouts. The reaction underscored closer scrutiny of whether major AI infrastructure investments by large technology companies will translate into stronger earnings and long-term growth.

Google is part of Alphabet Inc., one of the largest U.S. technology companies, and has been investing heavily in AI across its products, cloud services, and computing infrastructure. The higher capital expenditure outlook places additional focus on how quickly those investments can contribute to financial performance, particularly as companies race to expand the computing capacity needed to develop and run AI systems.