Apr 11, 2025 | Posted by Abdul-Rahman Oladimeji
The heads of Google and Amazon have restated their commitment to investing in AI and the necessary infrastructure. Alphabet CEO Sundar Pichai said during the Google Cloud Next 2025 conference that the company was still committed to spending around $75 billion on building out data center capacity to support AI.
Speaking to Reuters, Google Cloud's VP and GM, Sachin Gupta, said that while tariffs might increase the cost of importing hardware, the demand still necessitated investment. Amazon CEO Andy Jassy wrote in his 2024 letter to shareholders that with AI, there is a "substantial capital investment required."
He notes that while the company only starts monetizing the investment many months after it is spent, "We continue to believe AI is a once-in-a-lifetime reinvention of everything we know, the demand is unlike anything we’ve seen before, and our customers, shareholders, and business will be well-served by our investing aggressively now."
Walsh reiterated that the company is on track to meet its capex commitment for the year of $80bn, adding: "Data center planning is a multi-year and capital-intensive program we plan for years in advance to ensure we have sufficient infrastructure in the right places. In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history.
