Google’s Parent Company to Spend $75 Billion in 2025 to Boost AI Power
Alphabet, the company that owns Google, has confirmed it still plans to spend about $75 billion in 2025, according to a report by Reuters.
This massive investment is meant to help the company grow its data center power, especially for Artificial Intelligence (AI) tools like its Gemini chatbot.
Speaking at Google’s annual cloud computing event, CEO Sundar Pichai said the money would go into building better computer chips and servers. These are the brainpower behind Google’s most popular products like Search, YouTube, and AI services.
According to Reuters, Pichai described AI as “the biggest opportunity,” and said Alphabet is doing everything it can to bring those AI tools to both everyday users and businesses.
Even though there’s no guaranteed profit yet, Alphabet is going all in, betting big that AI will transform the future. Reuters noted that this year’s $75 billion plan is 29% more than what Wall Street experts expected earlier.
This news comes at a time when tech companies across the U.S. are spending huge amounts of money to build stronger AI systems. But Reuters reported that some investors are worried—asking when these big costs will start turning into big earnings.
Still, Alphabet’s shares jumped more than 7% on the stock market after former President Donald Trump announced a 90-day pause on new tariffs.
According to Reuters, this helped ease fears that a global trade war could make tech equipment even more expensive.
Another reason for Alphabet’s spending is to keep up with tough competition. Other companies like Microsoft, Amazon, and Nvidia are also racing to build powerful AI tools.
By improving its data centers and AI abilities, Reuters explained that Alphabet hopes to stay ahead in this high-stakes tech race.
In summary, Alphabet is taking a huge step forward in AI, even though it’s risky.
As Reuters rightly points out, the company is ready to lead the future of AI, while hoping that their gamble pays off soon.