Founders

Pichai emphasized that Google will make significant investments to drive AI development, with an estimated expenditure of $75 billion in 2025. He revealed this information in Alphabet’s Q4 2024 financial report. This figure represents a 43% increase compared to Google’s capital expenditures of $32.3 billion in 2023.

According to Pichai, this investment will accelerate AI innovation and further strengthen Google’s core business areas.

Capital expenditures—also known as “capex”—refer to funds used to acquire physical or fixed assets for long-term business operations.

While it remains unclear exactly how much of the $75 billion will be allocated to AI, a significant portion is expected to go toward expanding Google’s AI infrastructure. Other major tech firms are also ramping up their AI investments, including Meta, which has announced plans to spend $65 billion to expand its AI infrastructure.

In recent years, AI has become one of Google’s most important revenue streams.