Alphabet Inc. has reiterated its commitment to spending $75 billion this year to expand its data center infrastructure and power its artificial intelligence ambitions, despite growing market unease over United States trade tariffs and the rising costs of advanced technology.
Speaking at Google Cloud’s annual conference on Wednesday, CEO Sundar Pichai made a rare appearance to reassure investors that the company’s AI-driven roadmap—anchored by its Gemini model and integrated into core services like Search—is already generating strong returns.
“The opportunity with AI is as big as it gets,” Pichai said, reinforcing Alphabet’s confidence in its aggressive capital outlay, which was first announced in February. The investment marks a 29% increase over analyst expectations at the time.
Alphabet’s leadership acknowledged investor concerns about soaring infrastructure costs and the potential financial strain of President Donald Trump’s latest tariffs, particularly on hardware imports. However, Sachin Gupta, Vice President and General Manager of Google Cloud Infrastructure, insisted that customer demand continues to justify the scale of investment.
“We’re all processing what’s happening with tariffs,” Gupta told Reuters. “Yes, hardware may get more expensive, but our customers are moving fast, and we have to meet that momentum.”
Trump announced on Wednesday a temporary reduction in some of the newly imposed tariffs, while simultaneously escalating trade pressure on China—moves that injected further volatility into global markets. Despite the uncertainty, Alphabet’s stock closed nearly 10% higher, contributing to a $1.5 trillion surge in the combined market value of the so-called “Magnificent Seven” tech giants.
Alphabet is not alone in its AI spending spree. Microsoft recently confirmed plans to invest over $80 billion in AI infrastructure in 2025, while Meta Platforms has earmarked as much as $65 billion for similar efforts.
AI and cybersecurity remain two of the most resilient areas for enterprise investment amid macroeconomic headwinds, according to Chiraj Mehta, principal analyst at Constellation Research. He noted that early successes from companies using Google Cloud’s AI tools have strengthened the business case for continued aggressive funding.
Companies including Intuit, Papa John’s, and Verizon showcased their AI integration efforts at the conference. Intuit’s Chief Data Officer Ashok Srivastava said the financial software firm is “doubling down” on AI capabilities, while Papa John’s digital chief Kevin Vasconi claimed AI projects are delivering the company’s best returns.
Verizon, for its part, reported a surge in sales after deploying a Google-powered AI assistant that reduced customer service call times and freed up agents to focus on upselling.
