Alphabet Inc. (NASDAQ: GOOGL) has reported a robust Q1 2025, with net income soaring 46% year-over-year to $34.54 billion, driven by strong performances across Search, YouTube, and Cloud services. The company’s revenue reached $90.2 billion, marking a 12% increase from the previous year .
In line with its strategic focus on artificial intelligence (AI), Alphabet has reaffirmed its commitment to invest approximately $75 billion in capital expenditures for 2025. This substantial investment aims to enhance AI infrastructure, including the development of advanced data centers and custom AI chips, to support the company’s expanding AI initiatives .
CEO Sundar Pichai emphasized that this investment underscores Alphabet’s confidence in the vast opportunities presented by AI technologies. The company’s AI advancements are exemplified by the rollout of Gemini 1.5 Pro, which offers significant improvements in long-context understanding and multimodal capabilities across audio, video, text, and code .
Despite investor concerns over the scale of the investment, CFO Anat Ashkenazi expressed optimism, noting strong demand in cloud services and the need to scale infrastructure to meet this demand .
