Gofrixty [30 July 2025] – Google is doubling down on artificial intelligence and cloud computing. The tech giant has officially raised its capital spending guidance for 2025 to $85 billion, from the prior target of $75 billion. The enormous bet highlights Google’s deepened commitment to dominating the future of AI and cloud infrastructure.
Alphabet, Google’s parent company, announced the change on its earnings call this week. The most spending, nearly two-thirds, will be used to build and upgrade servers, data centers and AI computing systems, executives said. As worldwide demand for AI soars, Google is looking to ramp up operations to ensure that it can remain competitive.
Google Cloud is also doing well. The division generated $13.6 billion in revenue in the second quarter, up 32% from last year. This steep increase has prompted the company to increase its infrastructure spending, to accommodate the expanding volume of AI workloads and cloud-based services.
Also Read
This action now brings Google onto the same page as other tech juggernauts in the AI arms race. Amazon will spend ~$100 billion, Microsoft $80 billion and Meta $64-72 billion in 2025. These companies are miserably fighting to be best in creating the fastest to the most powerful AI systems.
