Google casts doubt on entire AI industry prospects for Wall Street investors

Google's quarterly report revealed a 2026 spending forecast of $205 billion, up from $190 billion the previous quarter, alarming investors due to the company's inability to accurately predict expenditures. Google is spending more than it earns, faces intense competition from Chinese AI developers, and must keep prices low for its models. Similar spending increases are expected from Meta, Amazon, and Microsoft in their upcoming reports. Oracle's debt for data center construction and Nvidia's $250 billion guarantee for OpenAI's debt are seen as signs of funding scarcity rather than demand. Chinese startup Moonshot AI released the Kimi K3 model, which remains competitive despite lacking access to advanced AI accelerators, suggesting the boom for Nvidia and other accelerator makers may be nearing an end. Experts predict an inevitable correction, with many AI companies disappearing, though investors continue to pour money in hopes of profiting from survivors.