Google’s big bet on AI for 2025
Matt V
February 05, 2025
Google parent company Alphabet is making a massive bet on an AI future, with plans to invest approximately $75 billion in 2025.
That’s more than double the $32.3 billion Alphabet spent in 2023. While the company hasn’t explicitly stated that all of this spending is AI-related, the broader industry trend suggests that a significant portion will go towards AI infrastructure.
With Microsoft, Amazon, and Meta all scaling up their AI operations, Alphabet’s move keeps it firmly in the race.
AI is also driving growth across Alphabet’s core businesses. The company reported a 12% year-over-year revenue increase to $96.5 billion in Q4 2024, with Google Cloud revenue rising 10% to $12 billion—largely driven by AI infrastructure and generative AI solutions.
Here’s what stands out:
Alphabet’s $75 billion capital expenditure in 2025 is its biggest AI investment yet.
Google Cloud revenue surged 10%, fuelled by AI-powered solutions.
CEO Sundar Pichai teased upcoming AI-driven Search features launching in 2025.
More than just spending
Alphabet is also rolling out major AI advancements. In Q4, it unveiled Gemini 2.0, Project Mariner (an AI agent that automates browser tasks), and Deep Research, a tool that scours the web for users.
The company even previewed a new Android XR mixed reality OS.
Meanwhile, Waymo, Alphabet’s self-driving unit, had a solid year despite Alphabet’s "Other Bets" category posting lower revenue and higher losses overall.
But, regulatory troubles loom—U.S. authorities are considering forcing Google to divest Chrome after a judge ruled it holds a search and ad monopoly.
Big spending, big ambitions. But will regulators let Alphabet’s AI empire thrive?