Google announced plans to invest about $75 billion in capital expenditures in 2025, which CEO Sundar Pichai confirmed in the company's fourth-quarter 2024 earnings report. The move is a significant increase from the $32.3 billion in capital expenditures in 2023. The announcement highlights Alphabet's strategy to remain a key player in the ongoing race for AI dominance.
While the company did not specify that all investments will be directed towards AI, current trends in the tech landscape suggest that a significant portion will likely fund infrastructure for AI development. Alphabet's income data also emphasized the positive impact of AI on its business. Total revenue increased by 12 % years -in the year to $ 96.5 billion, while Google Cloud's revenue increased by $ 10 % to $ 12 billion, which was driven by core products, AI infrastructure and generation of AI solutions. During the investor call, Pichai outlined future developments, including the company's Gemini AI assistant's "native ad concepts" and new search capabilities that will be rolled out through 2025. Key AI announcements in the fourth quarter included:
1) Gemini 2.0 launch
2) Project Mariner, a task automation AI agent for Chrome tasks
3) Debut of Deep Research, a tool that automates online research
4) Demonstration of the new Android XR mixed reality OS Aside from AI
Alphabet's autonomous vehicle subsidiary Waymo had a mixed year with strong operating results but declining revenue and widening losses. Legal troubles are also brewing. The Justice Department has suggested that Google is considering shutting down its Chrome browser as part of possible legal remedies following Judge Amit Mehta's antitrust ruling that declared Google a monopoly in the search and advertising markets. The outcome of this legal battle could have significant consequences for Google and its broader strategy going forward.
