Alphabet Raises 2025 Capital Expenditure to US$85 Billion
Alphabet CEO Sundar Pichai discusses AI’s strategic direction during a June 2025 event, coinciding with Alphabet’s $85B capex boost for AI and cloud infrastructure.
Alphabet Inc., the parent company of Google, has raised its capital expenditure forecast for 2025 to approximately US$85 billion, up from an earlier estimate of US$75 billion.
The increase, announced by CFO Anat Ashkenazi during Alphabet’s Q2 earnings call, reflects heightened investment in servers and data center construction. Demand for Google Cloud and associated AI services continues to grow rapidly, contributing to an annual revenue run rate now exceeding US$50 billion.
Alphabet’s investment priorities include expanding global capacity to support AI workloads running on GPUs and TPUs. These developments are seen as foundational to the company’s cloud strategy and critical to meeting evolving enterprise requirements.
The revised capex plan further underscores the scale of investment required to stay competitive in AI-driven cloud infrastructure, particularly as demand rises in Asia and other key growth markets.
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