Recently, Google's parent company Alphabet announced that it will invest $75 billion in capital expenditure in the field of artificial intelligence in 2025, and this huge investment has attracted widespread attention from the market. As technology giants compete in the field of AI, Google's strategic layout has also triggered different reactions from investors.
Recently, Google's parent company Alphabet announced in its latest financial report that it will invest $75 billion in artificial intelligence (AI)-related capital expenditures in 2025. This huge investment marks Google's ambitions in the field of artificial intelligence, and also highlights the fierce competition among tech giants in the fields of AI infrastructure and services. Markets responded to this as companies such as Google, Microsoft, Meta and Amazon scrambled to seize the high ground of the next AI wave.
Although Alphabet's revenue grew 12% in the quarter, investors were not buying it, and its share price fell nearly 10% in after-hours trading. Market analysts pointed out that Google's cloud computing business performed lower than expected, with revenue of US$11.96 billion, far from the market's expectations of US$12.19 billion. This manifestation has raised questions about whether Google's huge investment in the AI field is reasonable.
Google CEO Sundar Pichai defended this, who believes that AI infrastructure is the cornerstone of long-term growth. “We are building, testing and launching products faster. Our leadership in AI innovation is turning into product usage, revenue growth and results,” he said on social media.
Meanwhile, Google's new AI model, Gemini2.0, was released on the same day, marking its further advancement in AI services. Competing side by side with Google are Microsoft, Meta and Amazon. Microsoft plans to invest $80 billion in AI infrastructure, focusing on integrating AI into its cloud computing platform Azure, and deepening cooperation with OpenAI. Meta, on the other hand, focuses on developing the next generation of virtual assistants and AI content generation tools.
However, DeepSeek, a new AI company from China, has brought new competitive pressure to American tech giants. The AI model developed by DeepSeek provides high performance capabilities at a lower cost, which has led investors to question whether Google and its competitors’ huge investment in AI infrastructure is necessary.
Although AI is the core of Google's strategy, the growth of its cloud computing business seems to be showing signs of weakness. Experts pointed out that the slowdown in revenue growth of cloud services has raised concerns whether AI can bring immediate commercial benefits.
Despite the poor market response, Alphabet is still advancing its AI expansion strategy. The new Gemini2.0 model promises breakthroughs in multimodal capabilities, proxy AI and cost-effective processing. Whether Google's $75 billion investment will deliver the expected returns over the next few months remains to be seen.
Whether Google's huge AI investment can bring the expected returns remains to be verified. As global AI competition intensifies, the future market structure will become more complex.