Big Tech Invests $200 Billion in AI Infrastructure: YouTube and Cloud Drive Performance

On February 4, Alphabet Inc. (NASDAQ: GOOGL) reported its Q4 2025 and full-year results, with quarterly revenue rising 18% year-over-year to $113.8 billion and annual revenue up 15% to $402.8 billion. Growth was led by Google Services and Google Cloud, which grew 48%. In Q4, the company delivered operating income of $35.9 billion, net income of $34.5 billion and earnings per share of $2.82; these figures include $2.1 billion in Waymo-related employee compensation expenses. In November 2025, Alphabet issued $24.8 billion of unsecured senior notes; in February 2026, it led a $16 billion investment round in Waymo; it projects 2026 capital expenditures of $175 billion to $185 billion; and it declared a quarterly cash dividend of $0.21 per share on all share classes.

On February 20, Alphabet’s stock closed up about 4% in U.S. trading, as investors cheered the enterprise rollout of its Gemini AI models and news of an Asia e-commerce partnership—signs that AI-driven growth is being priced in. In the same month, the company announced upgrades to its high-performance AI lineup, including Gemini 3 DeepThink and Gemini 3.1 Pro, highlighting enhanced reasoning capabilities for complex research and engineering tasks.

Alphabet is a U.S. Big Tech holding company that owns Google Search, YouTube, Android and Google Cloud. Building on its core digital-advertising revenue, the company has expanded into cloud services, subscriptions, hardware and autonomous driving. Recently, Alphabet has focused its financial resources on large-scale investments in generative AI infrastructure, data centers and its autonomous driving subsidiary Waymo to establish the next generation of growth engines.