Alphabet, the parent company of Google, is planning to invest $75bn in AI infrastructure in 2025.

This move is aimed at bolstering the company’s capabilities in AI research and the integration of AI into products such as cloud and search services, reported Reuters.

Alphabet CFO Anat Ashkenazi was cited by the news agency as saying that the majority of the capital expenditure for 2025 is planned to be allocated to the construction of servers and data centres.

The company is planning to invest up to $18bn in the first quarter of 2025.

The announcement was made in conjunction with Alphabet’s mixed earnings report for the fourth quarter of 2024.

The company reported a 12% year-over-year increase in consolidated revenues, amounting to $96.5bn.

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Google CEO Sundar Pichai said: “Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies.

“In Search, advances like AI Overviews and Circle to Search are increasing user engagement.

“Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts. Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110bn.”

Alphabet’s 2025 investment also includes plans for headcount growth, particularly in strategic areas such as AI and cloud, reported CNBC.

Pichai was cited by the news agency as saying that the efficiency of Google’s Gemini family of AI models are comparable to China’s DeepSeek, a competitor offering lower-cost AI solutions.

In 2024, Google launched Gemini 2.0, the latest iteration of its artificial intelligence model, which boasts double the speed of its predecessor.