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Home Technology Google to invest $1 billion in AI education, elevating competition with Microsoft and OpenAI

Google to invest $1 billion in AI education, elevating competition with Microsoft and OpenAI

A recent survey reveals a significant increase in student use of AI tools for academic purposes
Google to invest $1 billion in AI education, elevating competition with Microsoft and OpenAI
The investment in AI tools aims to support research and training across accredited institutions nationwide.

Alphabet’s Google has unveiled a substantial commitment of $1 billion over three years to deliver artificial intelligence (AI) training and tools to higher education institutions and nonprofits across the United States.

So far, over 100 universities have joined this initiative, including some of the nation’s largest public university systems, such as Texas A&M and the University of North Carolina. 

Participating institutions may benefit from cash funding and resources, including cloud computing credits aimed at supporting AI training for students and facilitating research on AI-related subjects.

This billion-dollar investment also encompasses the value of premium AI tools, such as an enhanced version of the Gemini chatbot, which Google plans to distribute to college students free of charge.

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Rival efforts in AI integration

Google aspires to extend this program to all accredited nonprofit colleges in the U.S. and is contemplating similar initiatives in other countries, as noted by Senior Vice President James Manyika during an interview. He refrained from detailing the amount Google is allocating in direct funds to external institutions compared to covering its own cloud and subscription expenses.

This announcement arrives at a time when competitors like OpenAI, Anthropic, and Amazon are making analogous efforts to integrate AI into education, as the technology increasingly permeates society. In July, Microsoft committed $4 billion to enhance AI in education on a global scale.

By promoting their products to students, tech companies also position themselves to secure business contracts once these users transition into the workforce.

A growing body of research has highlighted concerns regarding AI’s impact on education, from facilitating cheating to diminishing critical thinking, prompting some schools to contemplate bans. Manyika indicated that Google has not encountered pushback from administrators since it commenced planning its education initiative earlier this year, but acknowledged that “many more questions” about AI-related concerns still linger.

“We’re hoping to learn together with these institutions about how best to use these tools,” he remarked, emphasizing that the insights gained could inform future product development decisions.

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Read more: MEA, Europe edTech market size to reach $120 billion by 2027

Rapid rise of AI in education

Recent developments in AI education reveal that the integration of AI tools in academia is accelerating rapidly. According to a 2025 student survey by the Higher Education Policy Institute (HEPI), student use of generative AI has surged, with 92 percent of students now using AI tools in some form, up from 66 percent in 2024. Many students use AI for explaining concepts, summarizing articles, and research suggestions, though 18 percent admitted to including AI-generated text directly in their coursework. The survey highlights a growing demand for institutional support in developing AI skills, though only 36 percent of students reported receiving such support. This indicates a critical gap between AI adoption and educational infrastructure that institutions need to address for effective and ethical AI integration in learning environments.

Moreover, OpenAI, one of Google’s competitors, is leading an initiative called the National Academy for AI Instruction, backed by major tech firms and teachers’ unions, aiming to train 400,000 K-12 educators across the U.S. by 2030. This highlights a collective effort across the education sector to prepare both teachers and students for a future where AI literacy is essential. Meanwhile, Microsoft’s Elevate program, with a $4 billion investment over five years, aims to train 20 million people globally in AI skills through a unified platform offering courses across various competency levels and partnering with educational and labor organizations.

These initiatives are supported by data indicating that the global EdTech market, driven by AI-powered tools, is projected to reach $404 billion by 2025. Countries leading in investments include the U.S., China, and the U.K., with AI applications spanning adaptive learning, administration, and student engagement.

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