Google's New $2 Billion AI Factory - Wyatt Investment Research

Google is investing $2 billion to build a new AI factory.

It’ll be Alphabet’s 41st data center. And the first located in Malaysia.

Yet it’s only possible thanks to a breakthrough technology called Hyper Power 2.0.

Alphabet is going on a spending spree…

They’re investing a total of $50 billion capital spending this year.

And a huge portion of that is going to AI factories.

Google Spending $50 Billion / Year

You can see that Alphabet’s spending has doubled in the last 4-years alone.

Basically, Google and every other tech company must upgrade every data center. And the reason is because of these new AI applications.

Here’s Alphabet’s CFO on a recent conference call…

“[It’s] overwhelmingly investments in our technical infrastructure with the largest component for servers followed by data centers.

The step-up in CapEx in Q4 reflects our outlook for the extraordinary applications of AI In 2024, we expect investment in CapEx will be notably larger than in 2023.”

Everyone knows that Nvidia (NASDAQ: NVDA) will profit from all this spending.

That’s why the stock is already up 129% this year.

Ian