Alphabet reaffirmed its commitment to invest approximately $75 billion this year in expanding data center capacity to enhance its generative AI initiative. Despite uncertainties regarding the returns and potential cost increases due to global trade tensions, Alphabet is determined to allocate the funds to acquire the necessary chips and servers to strengthen its core services like Search. The goal is to also advance AI offerings such as the Gemini model, as highlighted by CEO Sundar Pichai at Google's cloud computing unit conference. Pichai emphasized the immense potential that AI presents. In February, Alphabet shared its plan for the substantial investment, which exceeded analysts' expectations by 29%. Major tech firms are dedicating significant resources to AI infrastructure, prompting investors to seek greater profitability from these investments.
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