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AI: Google Invests $75 Billion To Crush The Competition

7h05 ▪ 4 min read ▪ by Mikaia A.
Getting informed Event

As trade tensions between major powers escalate, the AI battle rages on. Trump promises billions, Macron urges France towards excellence, and tech giants sharpen their algorithms like weapons of mass destruction. Among them, Google does not hold back: the firm plans to drop a colossal investment of 75 billion dollars in 2025 to strengthen its lead in artificial intelligence.

Giant Google robot under an electric sky

Artificial Intelligence: Google Raises the Stakes

In the wonderful world of unrestrained capitalism, investing billions is no longer a luxury but a necessity to stay in the race. Google, owner of Gemini, has therefore decided to double down with a staggering budget of 75 billion dollars in 2025, representing an increase of 43% compared to the 32.3 billion invested in 2023.

A handsome sum that will largely be used to strengthen its infrastructure dedicated to artificial intelligence.

Far from being the only one to increase the greenbacks, Meta announced a package of 65 billion $ for its own development in AI. The goal? To strengthen its computing and innovation capabilities, to avoid being left behind by the competition.

Google, for its part, is betting on its advancements like “AI Overviews” and “Circle to Search”, which are supposed to revolutionize the user experience and boost engagement.

  • 75 billion: investment planned by Google for 2025;
  • 12 billion: revenue from Google Cloud, up 10%;
  • 96.5 billion: total revenue, up 12%.
stock-price-drop-Alphabet
Alphabet’s shares dropped by over 7% after the session. Source: Yahoo Finance

Despite these performances, Alphabet still disappointed Wall Street, with revenues slightly below expectations. Result: a drop of over 7% in the stock price GOOG after the earnings release.

Sundar Pichai, Google’s CEO, remains confident: according to him, the Gemini 2.0 Flash models are among “the most efficient on the market“.

Google Facing the DeepSeek Threat

Everything seems to be going well in the best of worlds… unless a Chinese grain of sand doesn’t jam the machine. DeepSeek, an AI developed at a low cost – barely 6 million dollars compared to the billions spent by Americans – caused panic in the market in January.

By using less advanced hardware, this Chinese start-up has proven that it is not necessary to be a behemoth to compete with industry giants.

To make matters worse, a former Google engineer, Linwei Ding, has been caught quietly siphoning off more than 1,000 confidential files containing secrets related to supercomputers and chip design. His goal? To transfer these valuable data to Chinese companies and launch his own start-up.

A situation that comes at a bad time for Google, already accused of reneging on its ethical commitments by opening the door to the use of AI for military and surveillance purposes.

Between industrial espionage and technological rivalry, the AI war is just beginning. While Google seems to have a head start thanks to its massive investments, the recent upheavals in the market show that no leader is safe from a surprise.

With an AI capable of acting on your behalf, Google might have thought it was untouchable. Yet, the unexpected emergence of DeepSeek reminds us that nothing is set in stone. Dominance in artificial intelligence cannot be decreed; it must be proven.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.