Alphabet praises DeepSeek, but it’s massively ramping up its AI spending

Alphabet boosts AI spending to $75B despite DeepSeek's cheaper models.

: Alphabet plans to increase its capital expenditures by 42% to $75 billion this year to advance its AI capabilities. CEO Sundar Pichai acknowledges the work of DeepSeek but believes that lower AI costs will boost demand for Alphabet's services. Like Meta, Alphabet remains committed to significant AI investments despite potential risks. The broader tech industry is still focused on AI, with no clear signs of slowing down.

Alphabet is significantly increasing its AI-related expenditures, with plans to raise capital expenditures by 42% to $75 billion this year. This comes amid the rising influence of Chinese AI firm DeepSeek, which recently impacted Nvidia’s stock due to speculation over its cheaper AI models reducing the need for AI chips and data centers.

Alphabet's CEO Sundar Pichai noted DeepSeek’s remarkable work during a recent earnings call, but he emphasized that Alphabet remains committed to AI advancements. He believes that lower costs will drive greater usage, aiding Alphabet’s business by capitalizing on the increased demand for AI-powered services.

Echoing this sentiment, Meta's CEO Mark Zuckerberg also expressed substantial commitment to AI investments. He mentioned in a Meta earnings call that the company intends to spend “hundreds of billions” in the long run, despite the market chatter surrounding DeepSeek. The ongoing focus across tech giants underscores the growing importance of AI, despite uncertainties about future expenditure slowdowns.