Alphabet, the parent company of Google, projects an investment of "approximately $75 billion" in capital expenditures for 2025, as indicated by CEO Sundar Pichai during the Q4 2024 earnings release. Capital expenditures have recently become a prominent topic, with major tech firms vying to construct the infrastructure needed to advance their AI initiatives. Alphabet's announcement is strategically timed to ensure the company remains part of that conversation. In comparison, Alphabet spent $32. 3 billion on capital expenditures in 2023, making the anticipated $75 billion in 2025 a significant increase. While the press release does not explicitly state that the upcoming capital expenditures are entirely for AI, the substantial industry investment in AI infrastructure suggests a considerable portion will likely support Google’s AI projects. Google's business is also reaping the benefits of AI advancements.

Overall revenues rose 12 percent year-on-year to $96. 5 billion, while Google Cloud revenues increased by 10 percent to $12. 0 billion. Google attributes this growth to advancements in the Google Cloud Platform (GCP), particularly within core GCP products, AI Infrastructure, and Generative AI Solutions. During the investor call, Pichai highlighted that the company has “very good ideas for native ad concepts” for its Gemini AI assistant and hinted at new Search experiences set to be introduced to users throughout 2025. In the fourth quarter, Alphabet made significant announcements regarding its AI offerings, including the launch of Gemini 2. 0, an AI agent named Project Mariner capable of performing tasks within a Chrome browser, and a Deep Research tool designed to facilitate web research. Additionally, they showcased a new mixed reality operating system for Android XR. Waymo, a subsidiary of Alphabet, experienced a relatively successful 2024; however, today’s earnings report notes that revenue and losses in “Other Bets, ” which includes Waymo, were lower compared to the previous year. In Q4, the Department of Justice also suggested that Google might need to divest Chrome as part of the remedies following Judge Amit Mehta's August ruling, which declared the company a monopolist in search and advertising markets. The outcome of these remedies could significantly influence the future of Google and Alphabet.