Google is boosting investments in AI to $75B this year

Sundar Pichai, CEO of Google’s parent company Alphabet, is planning to spend up to $75 billion in expanding its artificial intelligence (AI) operation this year.

During Alphabet’s latest earnings call on Tuesday evening, Pichai emphasized the company’s willingness to heavily invest in data centers to run AI models. The arrival of DeepSeek, which claims to have developed its AI chatbot way cheaper in comparison to its competitors, doesn’t change anything on that promise.

Amongst other things, during the 2024 financial results Pichai spoke of a strong final quarter thanks to ‘leadership in AI’.

However, many American tech companies have spent large amounts of money on AI. Investors are eagerly awaiting to see big payoffs any time now.

Pichai said he is confident about the opportunities that AI offers in the future and wants to invest much more. During the earnings call he said he’s willing to put up to $75 billion to expand the company’s AI infrastructure this year.

“Part of the reason we are so excited about the AI opportunity is we know we can drive extraordinary use cases because the cost of actually using it is going to keep coming down, which will make more use cases feasible. And that’s the opportunity space. It’s as big as it comes, and that’s why you’re seeing us invest to meet that moment,” Pichai said.

Alphabet isn’t the only U.S. tech company to increase their spending on AI. Microsoft tends to spend approximately $80 billion for AI in its current fiscal year. Meta has pledged to invest up to $65 billion in enlarging its AI infrastructure.

“In 2025, I expect Meta AI will be the leading assistant serving more than 1 billion people, Llama 4 will become the leading state of the art model, and we’ll build an AI engineer that will start contributing increasing amounts of code to our R&D efforts,” Zuckerberg recently said.

Last month, The Stargate Project, a partnership of several American tech companies from the private sector, committed to invest $100 billion in the creation of new AI infrastructures in the U.S., increasing to $500 billion over the next four years.