According to Mr. Sundar Pichai - CEO of Alphabet, the company is planning a huge plan to develop AI products. The company is expected to invest about 75 billion USD in fixed accounts in 2025.

Alphabet said on its earnings call that it would spend between $16 billion and $18 billion in the first quarter. The spending will be primarily on technical infrastructure, particularly servers, data centers and networks.

Alphabet and other tech rivals are racing to build out their data centers with next-generation AI infrastructure, powered by Nvidia's graphics processing units (GPUs).

Last month, Meta also revealed that it would invest $60-65 billion in AI projects in 2025. Meanwhile, Microsoft pledged to spend $80 billion on AI-related fixed assets in the current fiscal year.

The launch of China’s open-source DeepSeek model has raised concerns among tech companies that are investing heavily in building infrastructure, leading to a stock sell-off last week.

Many tech executives have called attention to the Chinese startup and the implications for US-based tools.

For Alphabet, in addition to investing in infrastructure, the company plans to increase its headcount by 2025 in areas such as AI and cloud computing.