Google’s Alphabet invests $75 billion in AI chips and infrastructure to generate power generation models like Gemini

Google Parent Alphabet doesn’t slow down artificial intelligence (AI) pushes. The company is still making one of its boldest financial moves. On Wednesday, Alphabet announced plans to spend $75 billion this year to expand the capacity of its data centers. This is a large investment aimed at supporting both a growing portfolio of core services and a generator AI tools.

The news is making its biggest acquisition less than a month after Google acquired New York-based cloud security startup Wiz with a $32 billion full-speed agreement.

CEO Sundar Pichai shared the update at his annual meeting on Google Cloud. He emphasized that money will be sent to the chips, servers and other hardware needed to support AI development, including models such as Gemini.

“The AI ​​opportunities are huge enough to give you,” he said. He adds that investments will also benefit the company’s company’s customers. Going into the hands of both consumers and businesses is something we really focused on. ”

Spending also strengthens core products such as search, Pichai adds, providing enterprise customers with the infrastructure they need to build and scale their own AI applications.

Alphabet’s stock rose more than 7% in the afternoon trading after the announcement, supporting some of the news from President Trump. Stock prices have fallen about 8% since April 2, when the original tariff plans were made public, according to a Reuters report.

Alphabet first mentioned the $75 billion figure in February. At the time, the figure was about 29% higher than Wall Street estimates.

All the big tech companies are throwing huge sums of money on AI infrastructure. However, the pace and scale of these investments are beginning to raise eyebrows. Investors are asking for more clarity on what they will regain, and when.

For now, the alphabet does not seem to be indistinguishable. This week’s message was clear. It’s all going to AI and willing to spend a lot of money to get there.