Google parent Alphabet has reportedly reaffirmed its plan to invest $75 billion in 2025 to bolster its data center infrastructure, shrugging off concerns over US tariff uncertainties. According to a report by news agency Reuters, the announcement reportedly made on Wednesday (April 10) comes as investors grapple with the hefty price tag of AI initiatives amid volatile markets and an unclear economic future shaped by President Donald Trump’s trade policies.
Google CEO Sundar Pichai , speaking at Google’s annual cloud computing conference Google CloudNext, emphasized that the funds would fuel the purchase of chips and construction of servers. These investments aim to enhance Alphabet’s flagship products like Search while advancing AI innovations, including its Gemini model. “The opportunity with AI is as big as it gets,” Pichai said, underscoring the company’s bullish stance on the technology.
Google's AI spending beats estimates
The $75 billion figure, initially disclosed in February, is said to exceed analyst expectations by 29%, sparking both excitement and unease among shareholders. Investors remain wary of the escalating costs of AI development, particularly as Trump’s recent tariff adjustments—easing duties on some nations while intensifying them on China—add complexity to budgeting for hardware imports.
Google VP on Trump Tariffs
Sachin Gupta, Google Cloud’s vice president and infrastructure general manager, acknowledged the potential cost increases tied to tariffs. “We’re all processing what’s happening with tariffs,” he told Reuters, but stressed that robust customer demand justifies the spending surge.
Alphabet’s stock soared nearly 10% on Wednesday, contributing to a $1.5 trillion market value surge among the “Magnificent Seven” tech giants. The move mirrors bold AI spending plans from rivals, with Microsoft pledging over $80 billion and Meta targeting up to $65 billion for 2025.
Analysts see AI, alongside cybersecurity, as a rare bright spot where businesses are maintaining investment momentum despite economic headwinds. “Early wins from customers adopting Google Cloud as their go-to AI platform are fueling the push for aggressive expansion,” said Chiraj Mehta, principal analyst at Constellation Research, as per the report.
Google CEO Sundar Pichai , speaking at Google’s annual cloud computing conference Google CloudNext, emphasized that the funds would fuel the purchase of chips and construction of servers. These investments aim to enhance Alphabet’s flagship products like Search while advancing AI innovations, including its Gemini model. “The opportunity with AI is as big as it gets,” Pichai said, underscoring the company’s bullish stance on the technology.
Google's AI spending beats estimates
The $75 billion figure, initially disclosed in February, is said to exceed analyst expectations by 29%, sparking both excitement and unease among shareholders. Investors remain wary of the escalating costs of AI development, particularly as Trump’s recent tariff adjustments—easing duties on some nations while intensifying them on China—add complexity to budgeting for hardware imports.
Google VP on Trump Tariffs
Sachin Gupta, Google Cloud’s vice president and infrastructure general manager, acknowledged the potential cost increases tied to tariffs. “We’re all processing what’s happening with tariffs,” he told Reuters, but stressed that robust customer demand justifies the spending surge.
Alphabet’s stock soared nearly 10% on Wednesday, contributing to a $1.5 trillion market value surge among the “Magnificent Seven” tech giants. The move mirrors bold AI spending plans from rivals, with Microsoft pledging over $80 billion and Meta targeting up to $65 billion for 2025.
Analysts see AI, alongside cybersecurity, as a rare bright spot where businesses are maintaining investment momentum despite economic headwinds. “Early wins from customers adopting Google Cloud as their go-to AI platform are fueling the push for aggressive expansion,” said Chiraj Mehta, principal analyst at Constellation Research, as per the report.
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