Google expects to spend $75 billion in 2025 to boost AI

When we talk of AI, Google and a few other companies like OpenAI, Meta, and Anthropic immediately pop up in our minds. No wonder most of them, including Google, may have some big plans for this year. Yesterday, Alphabet CEO Sundar Pichai said that the company expects to invest approximately $75 billion in capital expenditures in 2025, with most reserved for Google’s AI spending.

Google announces spending $75 billion in 2025, with most of it likely reserved for AI

The company further wants to accelerate its progress with the announced capital expenditures. According to Pichai, the company is “confident about the opportunities ahead.” Not to forget, capital expenditures have been a trending topic among tech giants as it helps them to actively invest in their AI projects to keep up with the always-intensifying AI race.

The $75 billion figure is almost double Alphabet’s capital expenditures for 2023, which were $32.3 billion. While Google hasn’t exclusively mentioned that the upcoming capital expenditures are for AI, it’s safe to say that most of the chunk would go into it.

Alphabet reportedly expects to spend $16 billion to $18 billion in the first quarter. It would reportedly help the company to work on “technical infrastructure, primarily for servers, followed by data centers and networking.” Late last year, Google released some big AI products, including Gemini 2.0 Flash, the Project Marina AI agent, and more.

While Google Gemini continues to be the company’s hero AI product, we expect to see many new things this year. In fact, Alphabet’s CEO says that the company plans to introduce new Search experiences for users throughout this year.

AI has had a positive impact on Google’s businesses

AI has proved to be the money-making magnet for Google’s businesses. The company reported year-over-year growth of 12 percent in overall revenues, amounting to $96.5 billion. The growth across core Google Cloud Platforms (GCP) products, AI infrastructure, and Gen AI has bumped revenues of Google Cloud by up to 10 percent to $12 billion.

Google isn’t the only tech giant that has announced massive capital expenditures. Meta also has big plans for 2025. Mark Zuckerberg’s Meta announced investing up to $65 billion in 2025 as part of its AI push.

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