Google expects to spend $75 billion this year on the AI race

Feb 05, 2025 04:54 AM - 4 days ago 5183

Jay Peters

Jay Peters is a news editor covering technology, gaming, and more. He joined The Verge successful 2019 aft astir 2 years astatine Techmeme.

Google genitor institution Alphabet expects to put “approximately $75 billion” successful superior expenditures successful 2025, according to a connection from CEO Sundar Pichai in Alphabet’s Q4 2024 net release.

Capital expenditures person go a hot topic arsenic of precocious arsenic large tech companies title to build infrastructure to support their increasing AI ambitions, and today’s announcement from Alphabet is intelligibly meant to support the institution successful that conversation. Alphabet spent $32.3 cardinal connected superior expenditures in 2023, truthful $75 cardinal successful 2025 would beryllium a large jump. And while Google’s property merchandise coming doesn’t specifically opportunity that the upcoming superior expenditures are each for AI, fixed the magnitude of money flowing into AI infrastructure crossed the industry, it seems apt that a bully magnitude of the disbursal will spell toward benefitting Google’s AI work.

AI continues to use Google’s business arsenic well. Overall revenues are up 12 percent year-over-year to $96.5 billion. Google Cloud revenues are up 10 percent to $12.0 billion, which Google says is “led by maturation successful Google Cloud Platform (GCP) crossed halfway GCP products, AI Infrastructure, and Generative AI Solutions.”

During the quarter, the institution made immoderate large news astir its AI products, including revealing Gemini 2.0, an AI supplier called Project Mariner that tin complete tasks successful a Chrome browser, and its Deep Research tool that tin investigation things connected the web for you. It besides demoed a caller Android XR mixed reality OS.

Alphabet-owned Waymo had a beautiful bully 2024 overall, though today’s net study shows that “Other Bets,” which includes Waymo, had little gross and higher losses year-over-year.

In Q4, the Department of Justice besides projected that Google potentially divest itself of Chrome arsenic a remedy for Judge Amit Mehta’s August ruling that the institution is simply a monopolist successful the hunt and advertizing markets. The last result of those remedies could person a large effect connected Google / Alphabet’s future.

Alphabet’s investor telephone is happening now, and we’ll update this communicative pinch thing notable from the call.

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