Alphabet raises 2025 capex to $85B amid AI investment push

Alphabet Inc. (NASDAQ: GOOGL) increased its capital expenditure forecast for 2025 to approximately $85 billion, up from about $75 billion in 2024, according to a company statement. The previous analyst estimate was $73.31 billion.

Chief Executive Sundar Pichai said the increased spending reflects growing demand for the company's cloud products and services. Google Cloud's annual revenue run-rate has reached more than $50 billion, he noted.

The company reported double-digit revenue growth in its search business during the quarter. YouTube and subscription offerings also showed strong performance, Pichai said.

"AI is positively impacting every part of the business, driving strong momentum," Pichai stated. He cited new features including AI Overviews and AI Mode as performing well.

Google Cloud demonstrated growth in revenues, backlog and profitability during the period. The increased capital expenditure reflects the company's strategy to expand infrastructure supporting its artificial intelligence and cloud computing operations.

The capital expenditure increase represents a 13.3% rise from 2024 levels as Alphabet continues investing in data centers and computing infrastructure to support AI development and cloud services expansion.

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