Google plans to increase its investment in artificial intelligence (AI), with CEO Sundar Pichai confirming that the company will allocate around $75 billion in capital spending in 2025.
This is a rise from the $32.3 billion spent in 2023, which reflects Google’s commitment to strengthening its AI capabilities.
According to Alphabet’s Q4 and fiscal year 2024 report, Pichai stated that the investment would help drive AI advancements while also supporting Google’s core business operations.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Uniswap? (UNI Token Explained With Animation)
Though the exact portion allocated specifically to AI was not disclosed, a large part of the funds is expected to go toward expanding infrastructure to support AI projects.
AI has been a key part of Google’s business growth. Over the past year, overall revenue increased by 12%, reaching $96.5 billion. The company’s cloud division also saw a 10% jump, bringing in $12 billion, helped by demand for cloud-based AI services and infrastructure.
However, Alphabet’s total revenue was slightly lower than expected, falling short of the projected $96.7 billion. Following the earnings report, Alphabet’s stock price dropped by more than 7% in after-hours trading.
During a February 4 investor call, Pichai addressed concerns about rising competition, particularly from China’s AI model DeepSeek.
Still, he remained confident in Google’s AI technology, saying the company’s Gemini 2.0 Flash models are “some of the most efficient models out there”.
Meanwhile, Google recently shared a report on how government-backed hacking groups attempted to manipulate Gemini AI. What did the company say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
