Alphabet, the parent company of Google, has recently projected plans to invest “approximately $75 billion” in capital expenditures by 2025.
Capital expenditure has become a trending topic lately as major tech companies compete to build infrastructure to support their rapidly growing AI ambitions. Today’s announcement from Alphabet is clearly intended to keep the company in the forefront of these discussions.
In line with its AI ambitions, Alphabet spent $32.3 billion on capital expenditures in 2023, making the projected $75 billion by 2025 a significant leap. While Google’s press release does not explicitly state that all upcoming expenditures will be dedicated to AI, given the substantial industry-wide investment in AI infrastructure, it’s likely that a large portion of the spending will benefit Google’s AI initiatives.
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Additionally, AI continues to drive Google’s business growth, with overall revenue increasing by 12 percent year-over-year to $96.5 billion. Google Cloud revenue rose by 10 percent to $12.0 billion, which Google attributes to “growth across Google Cloud Platform (GCP) core products, AI infrastructure, and Generative AI solutions,” as stated by CEO Sundar Pichai in Alphabet’s Q4 2024 earnings release.
During today’s investor call, Sundar Pichai revealed that the company has “exciting ideas for native ad concepts” within its AI assistant Gemini. He also hinted at Google’s plans to unveil a new Search experience “for users throughout 2025.”
The $75 billion figure is undeniably substantial, and it suggests that Google’s AI technology could make significant strides this year, especially considering its earlier lag in entering the ChatGPT and Copilot era.
Via: Google, The Verge
