When you're betting $90 billion on AI infrastructure, you want someone who knows what they're doing running the show. Alphabet Inc. (GOOGL) just picked that person.
Google has promoted Amin Vahdat, a 15-year engineering veteran, to lead its artificial intelligence infrastructure strategy as the company scales the massive computing backbone that powers its Gemini models. Vahdat will become chief technologist for AI infrastructure and join the tight circle of 15 to 20 executives who report directly to CEO Sundar Pichai.
According to an internal memo reported by Semafor on Thursday, Google expects to spend over $90 billion in capital expenditures by the end of 2025. Most of that money is flowing into the infrastructure Vahdat will now oversee. That's not a typo—$90 billion is roughly the GDP of Ecuador.
Building the Machine That Builds the Machines
Vahdat isn't new to solving massive technical challenges. Back in 2022, he helped overhaul Google's Jupiter data-center network, which cut the cost of serving core products like YouTube, Search, and Cloud. Now he's taking on something bigger: making sure Google's AI infrastructure can support the company's ambitions to outpace OpenAI and maintain its lead in the AI race.
Google launched Gemini 3 in November with the goal of delivering a more intelligent, multimodal, and agentic AI system. The idea is that it understands user intent with fewer prompts and delivers richer, more visual answers across Search. Think less typing, more getting what you actually want.
What makes Gemini 3 work isn't just clever algorithms. Google's success stems from a decade of building custom TPU chips, designing cooling systems and optical switches around them, and vertically integrating the hardware and software that power models like Gemini. It's the kind of long-term infrastructure play that suddenly matters a lot when AI competition heats up.
OpenAI Feels the Pressure
The competitive dynamics are shifting fast. CNBC's Jim Cramer had warned that Google's new Gemini 3 model could spell trouble for OpenAI, predicting on X that tens of millions of users would shift to Gemini and leave OpenAI scrambling.
His post followed reports that Sam Altman put the company in "code red" to improve ChatGPT as Google's latest Gemini system gains momentum, boosts its user base, and intensifies competition across AI models and even Nvidia's dominance in AI chips.
Bank of America Securities analyst Justin Post said Gemini's user growth is bolstering Alphabet's AI ecosystem, boosting engagement and driving a sharp rise in traffic, even as Google Search remains stable against rising competition from ChatGPT.
Market Momentum
Investors are buying what Google is selling. GOOGL stock has gained over 69% year-to-date, driven by Cloud and AI business growth (especially with Gemini), increased investment forecasts, and positive analyst sentiment.
Alphabet has a consensus price forecast of $296.69 based on the ratings of 39 analysts. GOOGL Price Action: Alphabet shares were down 0.22% at $319.50 during premarket trading on Thursday. The stock is trading near its 52-week high of $328.83.
Vahdat's promotion signals that Google is treating AI infrastructure as a strategic priority at the highest level, not just an engineering problem to solve. When you're spending $90 billion and competing with the hottest startup in tech, that makes sense.
