Amid layoffs at Google, tech giant makes big announcement to spend Rs 622500 crore for…, set to affect …
Google data centre: Amid US President Donald Trump’s trade policies and the market uncertainty over the tariff war, Alphabet, Google’s parent company has reiterated that it plans to invest $75 billion this year (2025) to strengthen its data center infrastructure. Alphabet also dismissed apprehensions over the reservations on tariffs. The announcement, reportedly made on Wednesday, April 9 comes as investors grapple with the hefty price tag of Artificial Intelligence initiatives amid unstable markets and an unclear economic future that is likely to be heavily affected by Donald Trump’s trade policies, reported news agency Reuters.
Google CEO Sundar Pichai emphasized that the funds would fuel the purchase of chips and construction of servers. These investments aim to enhance Alphabet’s flagship products like Search while advancing AI innovations, including its Gemini model, said Pichai while speaking at Google’s annual cloud computing conference Google CloudNext. “The opportunity with AI is as big as it gets,” he said, highlighting company’s strong stance on the technology.
The $75 billion figure, initially disclosed in February, is said to exceed analyst expectations by 29%, sparking both excitement and unease among shareholders. Investors remain wary of the escalating costs of AI development, particularly as Trump’s recent tariff adjustments, easing duties on some nations while intensifying them on China, add complexity to budgeting for hardware imports, reports TOI.
Google Cloud’s vice president and infrastructure general manager Sachin Gupta while acknowledged the potential cost increases tied to tariffs. “We’re all processing what’s happening with tariffs,” he said while talking to Reuters adding that robust customer demand justifies the spending surge.
Alphabet’s stock soared nearly 10% on Wednesday, April 9 contributing to a $1.5 trillion market value surge among the “Magnificent Seven” tech giants. Microsoft has announced over $80 billion while Meta has set up a target of up to $65 billion for 2025.
Analysts see AI, alongside cybersecurity, as a rare bright spot where businesses are maintaining investment momentum despite economic headwinds. “Early wins from customers adopting Google Cloud as their go-to AI platform are fueling the push for aggressive expansion,” said Chiraj Mehta, principal analyst at Constellation Research, as per the report.
Earlier on Thursday, April 10, Google laid off hundreds of employees from the platforms and devices unit, which works on the Android software, Pixel phones and the Chrome browser. This cut comes after the tech giant’s January buyout offers to employees in the unit, according to a report. This also comes after Google laid off employees in its cloud division in February, though it said that the job cut round affected only a few teams, according to a Bloomberg report.
The recent tech layoffs have taken out middle managers from Google and Amazon. The Google layoffs come after competitor Microsoft reportedly considering another layoff round.
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