Alphabet Advances AI Push as EU Clears Wiz Takeover

The next phase of Alphabet?s expansion is underway. The European Commission has granted unconditional clearance for Google?s purchase of the cybersecurity specialist Wiz, a deal valued at $32 billion. This marks the largest acquisition in Google?s 28-year history. Regulators concluded there is no market risk, noting that Google remains a challenger in cloud services to Amazon and Microsoft.

The Wiz integration aims to bolster security offerings across cloud environments and strengthen Google?s enterprise footprint. The closing of the transaction is now expected by the end of March 2026.

To fund its ambitious AI initiative, Alphabet tapped the debt market this week with a multi-currency bond issue that includes a rare Century Bond, a 100-year maturity instrument. The freshly raised capital will go directly toward expanding the company?s technology backbone, especially data centers and Tensor Processing Units (TPUs) to support the Gemini AI models.

Management has signaled a substantial capital plan for 2026, with capital expenditures (Capex) guided between $175 billion and $185 billion. This outlook represents a sharp increase from 2025?s Capex, which totaled $91.4 billion, nearing a near-doubling of investment levels.

Should investors sell immediately? Or is it worth buying Alphabet?

Growth vs. Costs

Initial reactions from investors were cautious, given the scale of the spending and its expected dampening effect on free cash flow in the near term. Yet the core business remains robust. In Q4 2025, Google Cloud revenue rose 48% year over year to $17.66 billion, surpassing forecasts.

Bank strategists at JPMorgan reaffirmed their Overweight rating on Alphabet, with a price target of $395. They highlight ongoing momentum in cloud adoption and an expanding backlog, which now stands at $240 billion. By pairing the record acquisition with a sweeping investment push, Alphabet is placing a confident wager on its long-term leadership in the AI era.

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