Google is betting $85 billion on AI

👋 Good morning/evening (wherever you are). It’s Wednesday.

Google just posted blowout Q2 earnings, with $96.4B in revenue and 32% year-over-year Cloud growth.

But the bigger story is its plan to spend $85B on capital expenditures in 2025, up from $75B, with most of it going toward AI.

CEO Sundar Pichai says AI is "positively impacting every part of the business," pointing to 450M Gemini users, 70M videos created with Veo 3 since May, and over 2B monthly users of AI Overviews.

Those numbers are hard to ignore.

OK let’s keep going ↓

🔥 Creative pulse

Sharing another JSON + Veo 3 template.

It’s a glass-metal hybrid bike clip (8 seconds). Say that 3 times.

Anyways, I love this one because it’s such a cliché prompt…“An ultra-futuristic cinematic sequence capturing the reveal of a next-gen”…but it highlights how much better AI is getting at analyzing more advanced prompts.

Watch the video. Posted on LinkedIn.

PS: I’m launching an AI creative community soon. I’ll share the link right here next week. Keep an eye out.

💡 Here’s what you should know

• White House unveils America’s AI action plan

  The plan outlines 90+ federal actions to boost U.S. AI leadership through innovation, infrastructure, and global partnerships.

• YouTube Shorts is adding image-to-video

  YouTube is rolling out new AI tools for Shorts, including photo-to-video and generative effects powered by Veo 2.

• Google Photos adds AI video and remix tools

  New features powered by Veo 2 let users animate photos and apply creative styles, with SynthID watermarking for transparency.

• DeepMind builds AI to decode ancient Roman texts

  New model Aeneas helps historians restore, date, and interpret Latin inscriptions using text and image input.

• Proton launches Lumo, a privacy-first AI assistant

  Lumo offers encrypted, no-log AI chats with zero data sharing and is part of Proton’s €100M investment in European AI.

• Delta’s AI ticket pricing draws fire from US lawmakers

  Delta is testing AI to set 20% of ticket prices dynamically. Senators are raising concerns about fairness and transparency.

• Canvas now lets teachers build ChatGPT-style assignments

  OpenAI’s models are now embedded inside Canvas, powered by Instructure’s new IgniteAI platform for secure, educator-guided AI.

💰 The numbers

• Vanta raised a $150M Series D, valuing it at $4.15 B to boost its AI-driven compliance/security platform with agents that speed up reviews by 81%.

• Aidoc raised $150M to scale its real-time AI diagnostics platform used in hospitals, with backing from Nvidia.

• Lovable hit $100M ARR in just 8 months and launched fully agentic mode, enabling end-to-end AI software builds with real-world integration.

• Databricks co-founder Andy Konwinski launched the $100M Laude Institute to fund AI research with real-world impact, backed by leaders like Jeff Dean and Joelle Pineau.

• Gupshup raised over $60M in equity and debt to scale its conversational AI and messaging platform across global markets.

• The Artificial Intelligence Underwriting Company (AIUC) launched with a $15M seed to build standards, audits, and insurance for safe enterprise AI adoption.

• Diode Computers raised a $11.4M Series A led by a16z to speed up PCB design using AI, reducing timelines from weeks to days.

• Dash Bio added $11M in seed funding to enhance its AI/robotics-powered clinical sample analysis system.

• Kluisz.ai raised $9.6M to build a private-cloud generative AI platform for enterprises, led by RTP Global.

• Hypernatural raised a $9.2M seed to build a “Canva for video” generative AI tool.

• Olto raised $5.1M to automate product demos using AI, in a seed round co-led by Nexus and The General Partnership.

🧠 Thought starters

AI isn’t just for homework anymore.

A new study from Common Sense Media shows teens are turning to AI for advice, friendship, and emotional support.

• 70% of teens have used AI companions

• Half use them regularly

• One in three say AI conversations are as satisfying as talking to real friends

• Many now ask AI for help with decisions, relationships, and even what to wear

A few quotes that stood out:

• “AI is always available. It never gets bored with you. It’s never judgmental.” – Ganesh, 18

• “That felt a little bit dystopian, that a computer generated the end to a real relationship.” – Ganesh, on a friend using AI to write a breakup text

• “I could see a kid that grows up with AI not seeing a reason to go to the park or try to make a friend.” – Bruce, 17

• “One of the concerns is that they no longer have trust in themselves to make a decision.” – Prof. Eva Telzer, UNC

• “It’s the new addiction. That’s how I see it.” – Ganesh, 18

Teens aren’t just using Character.AI and Replika. They’re using ChatGPT, Claude, and even adult apps like SpicyChat AI.

Experts warn this shift could reshape how teens develop identity, confidence, and social skills.

Meanwhile, most parents are still in the dark.

Makes you wonder if adults and kids are feeling the same way.

Source: Associated Press (July 2025)

😂 Meme of the day

Thanks for reading,

Eddie

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