Google to Invest $85 Billion in AI to Fuel Tech Breakthroughs

In a bold proclamation, and reflecting the existing success, Google is increasing its involvement in AI and cloud time-up across $85 billion by 2025, $10 billion higher than previously estimated levels.

Reflecting on artificial intelligence as it has materialized throughout Google's history, CEO Sundar Pichai reported AI is now impacting every segment of Google's operation, search, ad, cloud, and hardware, i.e from end to end in Google's supply chain.

The massive increase followed Google's impressive second quarter reporting $96.4 billion in revenues, an increase of 14% year-over-year, and net income of $28.2 billion, an increase of 19%. Cloud services revenues grew to $13.6 billion, an increase of 32%.

Also Read: Engineering the Future: AI and Mobility Platforms in Smart Electronics

This growth is attributed toward the increase in demand for AI workloads, the same goes for gains in search and ads where Google generated substantial search and ads revenues of $54.2 billion assisted by new AI-driven tools,

The company’s flagship AI tools are seeing explosive growth. AI Overviews, the feature that generates real-time summaries for search queries, now serves over 2 billion users monthly, up from 1.5 billion just two months ago. Google’s conversational AI assistant Gemini boasts 450 million monthly users. New AI Mode for search generates overwhelming success with over 100 million monthly users.

This aggressive investment signals Google’s intent to lead the next wave of digital transformation, even as it navigates growing regulatory scrutiny and rising infrastructure costs. For the tech industry, it’s a clear message: AI is no longer an add-on—it’s the core business.