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Alphabet's Capital Spending to Hit $108B Even as Earnings Shine
The Straits Times
|July 25, 2025
Google parent Alphabet on July 23 reported quarterly earnings that topped expectations, saying artificial intelligence (AI) has boosted every part of its business.
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SAN FRANCISCO —
But Alphabet also said it will spend US$85 billion (S$108 billion), or US$10 billion more than it previously planned, in 2025 on capital expenditures — heightening pressure on the tech giant to justify the cost of keeping up in the AI race.
Although Alphabet's second-quarter revenue of US$96.4 billion and profit of US$28.2 billion beat forecasts, its stock initially sank in after-hours trading, then rebounded after chief executive Sundar Pichai explained that the investments are necessary in order to keep up with customer needs.
“Our AI infrastructure investments are crucial to meeting the growth in demand from cloud customers,” he said on a call following the report.
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