Alphabet to Invest $75 Billion in AI by 2025

Alphabet, Google's parent company, has announced its commitment to invest $75 billion in 2025 to expand data center infrastructure, aiming to bolster AI innovations despite concerns over rising costs and US trade policy uncertainties. This investment, highlighted at the Google CloudNext conference, is intended to support core services like Search and advance AI tools such as the Gemini model. The announcement triggered a near 10% rise in Alphabet's stock, contributing to a $1.5 trillion market value surge among major tech firms. Investors remain cautious about the substantial capital involved in AI development and the potential impact of US tariffs, particularly those affecting imports from China. Nevertheless, robust customer demand is cited as justification for the investment, aligning with similar commitments from Microsoft and Meta. The move reflects a broader trend of sustained investment in AI and cybersecurity, areas seen as resilient despite macroeconomic challenges.