Google invests $75 billion in artificial intelligence
February 05, 2025
In 2025, Google will invest $75 billion in capital expenditures, primarily in AI, which is 43% more than in 2023. This will be the largest investment in the company’s history.
Google’s CEO stated that the investment will accelerate AI development and strengthen key business areas.
Where will the billions go?
The exact AI investment amount is unknown, but experts believe Google will focus on cloud infrastructure and computing power. The company is competing with tech giants: Meta will invest $65 billion in AI, while OpenAI and Microsoft continue to fund neural networks and cloud solutions.
Impact on company revenue
AI technologies have become a key growth driver for Google. In 2024, the company’s revenue increased by 12% to $96.5 billion, while the Google Cloud segment grew by 10% to $12 billion due to demand for cloud services and generative AI solutions. However, Alphabet’s revenue ($96.7 billion) did not meet analysts’ expectations, causing the stock to drop by more than 7% in after-hours trading.
New challenges
Google faces growing competition from Chinese developers. DeepSeek has introduced an AI model capable of rivaling OpenAI, spending only $6 million and using less powerful Nvidia hardware.
This raises questions about the necessity of multibillion-dollar investments. Sundar Pichai emphasized the efficiency of Gemini 2.0 Flash models, but their leadership in the global AI race remains uncertain.