Google is following the Trump administration’s lead on purging diversity, equity and inclusion efforts, cutting mentions of DEI from its annual report and scrapping its goal of hiring applicants from historically underrepresented backgrounds.

This is a significant increase, and it shows that Alphabet is throwing the kitchen sink at its A.I. plans,” said Kathleen Brooks, research director at XTB, in an analyst note. What worries investors more is that Alphabet is spending money more quickly than making it.

The Alphabet company plans a major outlay after its rivals Microsoft and Meta have been pulling ahead in investments.

Google parent company Alphabet expects to invest “approximately $75 billion” in capital expenditures in 2025, according to a statement from CEO Sundar Pichai in Alphabet’s Q4 2024 earnings release. Capital expenditures have become a hot topic as of late as big tech companies race to build infrastructure to support their growing AI ambitions,

Alphabet's Google is scrapping its goal to hire more employees from underrepresented groups and is reviewing some of its diversity, equity and inclusion (DEI) initiatives, joining a slew of U.S. businesses scaling back diversity initiatives.

According to an internal memo, the company is also reevaluating changes to its other DEI programs 'to comply with recent court decisions and US Executive Orders.'