Google plans to increase its investment in artificial intelligence (AI), with CEO Sundar Pichai confirming that the company will allocate around $75 billion in capital spending in 2025.
This is a rise from the $32.3 billion spent in 2023, which reflects Google’s commitment to strengthening its AI capabilities.
According to Alphabet's Q4 and fiscal year 2024 report, Pichai stated that the investment would help drive AI advancements while also supporting Google’s core business operations.
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Though the exact portion allocated specifically to AI was not disclosed, a large part of the funds is expected to go toward expanding infrastructure to support AI projects.
AI has been a key part of Google’s business growth. Over the past year, overall revenue increased by 12%, reaching $96.5 billion. The company’s cloud division also saw a 10% jump, bringing in $12 billion, helped by demand for cloud-based AI services and infrastructure.
However, Alphabet’s total revenue was slightly lower than expected, falling short of the projected $96.7 billion. Following the earnings report, Alphabet’s stock price dropped by more than 7% in after-hours trading.
During a February 4 investor call, Pichai addressed concerns about rising competition, particularly from China’s AI model DeepSeek.
Still, he remained confident in Google’s AI technology, saying the company’s Gemini 2.0 Flash models are “some of the most efficient models out there”.
Meanwhile, Google recently shared a report on how government-backed hacking groups attempted to manipulate Gemini AI. What did the company say? Read the full story.
