Google Plans $75 Billion Investment in AI Infrastructure for 2025

Google's CEO Sundar Pichai has revealed plans for a substantial increase in the company's capital expenditures, projecting a $75 billion investment in 2025, a 43% rise from last year’s $32.3 billion.

The primary goal of this investment is to bolster artificial intelligence (AI) development, with a focus on enhancing Google’s AI infrastructure and supporting the company’s core operations.

This significant capital expenditure, often referred to as “capex,” will likely be directed towards expanding Google’s AI capabilities, although the exact allocation remains unclear. This surge in investment aligns with trends in the tech industry, with competitors like Meta also significantly boosting their AI spending.

AI has become a major revenue driver for Google, contributing to the company’s overall revenue growth, which saw a 12% year-on-year increase, reaching $96.5 billion. Additionally, Google Cloud’s revenue grew by 10%, supported by steady expansion in AI services and solutions.

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Despite these positive financial results, Alphabet’s overall revenue slightly missed analyst expectations, leading to a 7% drop in share prices during after-hours trading.

In response to emerging AI competition, particularly from China-based DeepSeek, Pichai expressed confidence in Google’s competitive edge, emphasizing that Google’s Gemini 2.0 Flash models remain among the most efficient in the market, even compared to DeepSeek’s lower-cost models.

Alexander Stefanov