In 2025, Google spent a record capital expenditure of 43% of what it incurred in 2023 at about $75 billion. A bigger portion of its budget is to artificial intelligence that the company plans to strengthen. In that regard, the action demonstrates how AI will shape the future growth trajectory of the company.
Why Does Capex Matter and What Is It?
The term “capex” describes the money a business invests in long-term real estate like technology and infrastructure. This means funding for AI research, infrastructure, and technologies that will improve Google’s core products–from voice assistants, cloud computing to search.
AI Investment: What Drives Google’s Growth
In this regard, $75 billion is highly invested in AI-driven projects as pointed out by Google Chief Executive Officer Sundar Pichai. Since AI is obviously one of the largest revenue-generating businesses at Google, there is little wonder that the firm reports a 12% total revenue increase for 2024, at $96.5 billion.
Improving AI infrastructure and supporting generative AI and developing Google Cloud-the latter grew its revenue 10% to $12 billion over the same period-will form part of investment.
AI is central to Google’s future because the services of this company—like Google Cloud and Google Assistant—continue to improve and dramatically augment its business.
How Much Google Spends on AI Compared to Its Rivals
Not only Google is investing heavily in AI. For instance, Meta has vowed to spend $65 billion more on its infrastructure for AI. Pichai is still sanguine, however, over Google’s lead. He argued that the most efficient models his company has been producing are Gemini 2.0 Flash compared to China’s DeepSeek AI, which gained much hype back in January with its AI model at a third of the price.
Amazon plans to invest over $100 billion in cloud infrastructure, up from $77 billion in 2024. Google (Alphabet) will spend $75 billion, a 42% increase, seeing Al as a major opportunity.- Microsoft commits $80 billion to Azure, reinforcing its partnership with OpenAl.- pic.twitter.com/N5nZUZT0g2
— Prof. Ahmed Banafa (@BanafaAhmed) February 12, 2025
Future Hopes and Concerns
Revenue for Google trailed estimates, however, with a few silver linings in how the company was performing at its bottom line. This resulted in a 7% decline in the stock price. Still, the enormous AI investment is sure to reap long-term benefits.AI will have huge prospects, and Google is well-positioned to dominate that market.
Google’s AI future
Google is prepared to continue expanding and innovating with a $75 billion investment in AI. It will lead the technology space with its generative AI and AI infrastructure focus. Even in the midst of such stiff competition, the fact that Google’s calculated investment in AI is signaling a bright future for both business and sector suggests that the industry is indeed healthy.
