April 10, 2025 – Alphabet Inc., Google’s parent company, has reaffirmed its commitment to pouring approximately $75 billion into expanding its data centers this year, underscoring its aggressive push into generative AI despite lingering uncertainties around returns and rising costs triggered by global trade tensions.
CEO Sundar Pichai, speaking at Google Cloud’s annual conference, emphasized that the investment would fund critical chip and server acquisitions to bolster core services like search while accelerating AI-driven innovations such as its Gemini model. “The AI opportunity is vast,” he noted, adding that the spending would also benefit enterprise clients. “We’re deeply focused on delivering technological advancements to both consumers and businesses.”
This announcement reiterates Alphabet’s February pledge, which surpassed Wall Street expectations by 29%.
The tech sector’s AI spending frenzy has sparked investor anxiety as companies like Microsoft and Meta also ramp up infrastructure investments. Microsoft revealed Tuesday it would allocate over 80billiontodatacenterexpansionthisyear,citingbothshort−andlong−termdemand.Meta,meanwhile,planstoinvestupto65 billion in AI infrastructure in 2025.
Since OpenAI’s ChatGPT launch in 2022, AI investments have surged as firms vie for dominance in generative AI, aiming to diversify revenue streams and enhance product offerings.
