Google said it would spend $ 75 billion on building artificial intelligence this year, or more than 29 % of what Wall Street expected. Investors have expressed concern about the goal of the lost cloud revenues and show increasing patience with regard to profitability.
When asked about the huge spending bumper on a collective call with analysts, the CEO of Google Sundar Pichai discussed these developments. He pointed out that the Google Gemini family is an artificial intelligence mode almost corresponds to energy such as Deepseek.
Analysts are now wondering Google The capital of American competitors is spent after the climbing of Dibsic in China, a model of low -cost artificial intelligence.
The alphabet is set aside Huge investment for Artificial intelligence growth
Alphabet is largely investing in developing infrastructure to support and integrate artificial intelligence research in products such as research and cloud services. The figure of $ 75 billion in the expenses in 2025 represents 43 % from the expenses of the 32.3 billion capital company in 2023.
Pachay He pointed out that this investment will lead to “accelerating progress” in creating artificial intelligence and increasing the company’s basic companies.
The financial director Anat Ashkenazi said in the invitation that the majority of Capex for 2025 will go to building servers and data centers. The results in the fourth quarter are partially attributed to the capacity restrictions on cloud artificial intelligence offers. Capital expenses-also known as “capex”-are money dedicated to the acquisition of material or long-term material assets for commercial operations.
Alphabet expects to spend about $ 18 billion in the first quarter. This number is largely the largest compared to about $ 6 million, Dibsic said it has spent on the final training round to develop the artificial intelligence model.
While the precise allocation of investment for artificial intelligence is still unclear, the majority is expected to be used to expand Google’s infrastructure from artificial intelligence. Other major technology companies have increased spending on prosecution -related projects, including Meta, which it said will spend $ 65 billion to expand Amnesty International’s infrastructure.
Google Cloud sees growth, despite Miss Revenue
Artificial intelligence has been among the most reliable sources of revenue in Google in recent years, with total revenues increased by 12 % year on an annual basis to 96.5 billion dollars.
Meanwhile, Google Cloud revenues increased by 10 % to $ 12 billion during the same period, a growth attributed to Google to consistent performance via “Core Google Cloud Platform Production, AI AI, and artificial intelligence solutions.”
However, Alphabet’s total revenue is lower than that of 96.7 billion joint analysts, and the price of his share decreased by more than 7 % in post -hours trading.
During an investor call on February 4, Pichai reduced the participation in the potential risks offered by emerging competitors, especially Deepseek, the China’s artificial intelligence model and that disrupted the market in late January.
Pichai has informed those who have to call that the Google 2.0 Flashs of GEMINI 2.0 “is among the most efficient models available”, even when it is measured against Deepseek’s V3 and R1 models.
On January 27, Deepseek surprised the American market by announcing that its developers had created a similar competitor to American AI companies such as Openai at a much lower cost.
The company’s reports on developing the artificial intelligence model with a very limited budget with just less than $ 6 million, using less developed devices than the NVIDIA semiconductor manufacturer.
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