Google CEO Sundar Pichai backs AI push: Alphabet to spend $75 billion on data infrastructure

Google's parent company Alphabet Inc. has reiterated its ambitious plan to invest $75 billion in 2025 to expand its global data center infrastructure, signaling unwavering confidence in the future of artificial intelligence despite growing uncertainties around US trade and tariff policies.

According to reports, the announcement was reaffirmed on April 10 during Google CloudNext, the company's annual cloud computing conference. The investment—one of the largest ever committed by a tech company for infrastructure—will fund the purchase of advanced chips, the construction of new server farms, and enhancements to support AI-powered products like Google Search and its next-generation Gemini AI model.

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"The opportunity with AI is as big as it gets," Google CEO Sundar Pichai declared during the event, highlighting Alphabet's bullish stance on the future of AI and its centrality to the company's product roadmap.

Spending beats analyst expectations:

The $75 billion figure, originally floated in February, surpasses analyst forecasts by nearly 29%, prompting mixed reactions from investors. While some see the move as a bold play in a fast-moving AI race, others are expressing caution over the rising costs associated with AI development, especially in light of shifting US tariff regulations under former President Donald Trump.

Recent policy adjustments have eased tariffs on certain countries while ramping up duties on imports from China, complicating cost forecasts for hardware and chip imports.

"We're all processing what’s happening with tariffs," said Sachin Gupta, Google Cloud's vice president and infrastructure general manager. However, he added that the strong and growing demand for Google's cloud and AI services justifies the aggressive capital outlay.

Tech stocks soar amid AI optimism:

Alphabet's stock jumped nearly 10% on Wednesday, contributing to a broader $1.5 trillion surge in market value across the "Magnificent Seven" tech giants. The move puts Google in line with industry peers like Microsoft and Meta, which are also ramping up AI infrastructure spending with pledges of over $80 billion and $65 billion, respectively.

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Industry experts view AI—and cybersecurity—as rare investment strongholds in an otherwise cautious market environment.

"Early wins from customers adopting Google Cloud as their go-to AI platform are fueling the push for aggressive expansion," noted Chiraj Mehta, principal analyst at Constellation Research.