Google’s Alphabet to invest $75B in AI chips and infrastructure to power generative models like Gemini

Google parent Alphabet isn’t slowing down its artificial intelligence (AI) push. The company is making one of its boldest financial moves yet. On Wednesday, Alphabet announced it plans to spend $75 billion this year to expand its data center capacity — a massive investment aimed at supporting both core services and its growing portfolio of generative AI tools.

The news comes less than a month After Google acquired New York-based cloud security startup Wiz for a $32 billion all-cash deal, making its biggest acquisition yet.

CEO Sundar Pichai shared the update during the annual conference for Google Cloud, where he emphasized that the money will go toward chips, servers, and other hardware needed to support AI development, including models like Gemini.

“The opportunity with AI is as big as it gets,” he said, adding the investments would also benefit the company’s enterprise customers. Getting advances into the hands of both consumers and enterprises is something we are really focused on.”

The spending will also strengthen core products like Search, Pichai added, while giving enterprise customers the infrastructure they need to build and scale their own AI applications.

Alphabet’s stock rose more than 7% in afternoon trading after the announcement, helped in part by news from President Trump, who said the U.S. would pause its planned tariffs for 90 days. The stock had been down about 8% since April 2, when the original tariff plans were made public, according to a report from Reuters.

Alphabet first mentioned the $75 billion figure in February, surprising analysts who had expected a smaller number. At the time, the figure was about 29% higher than Wall Street’s estimates.

Big Tech companies are all throwing huge sums into AI infrastructure. But the pace and scale of these investments are starting to raise eyebrows. Investors have begun pressing for more clarity on what they’ll get back — and when.

For now, Alphabet seems unfazed. Its message this week was clear: it’s going all in on AI, and it’s willing to spend heavily to get there.