Alphabet's record $514 billion cloud backlog and rapidly growing customer demand provide sufficient contracted revenue to justify the additional $15 billion capex increase.

"CapEx guidance increased to $195B–$205B, resulting in negative FCF and suspended buybacks, but funding is de-risked with Berkshire Hathaway support."

"The company exited the quarter with a record $514 billion cloud backlog after adding roughly $50 billion in just one quarter. Management also disclosed that customers are consuming more than 50% above their contractual commitments while Google is winning new cloud customers at more than twice last year's pace."