Alphabet and Google CEO Sundar Pichai noted the company’s AI-driven products, like Gemini and AI Overviews, are gaining serious traction|World Economic Forum|CC BY-NC-SA 2.0
Google parent Alphabet posted strong Q2 earnings on Wednesday, with revenue hitting $96.43 billion, well above the expected $94 billion. The company’s shares rose 3% after hours.
Google Cloud continued to shine, with revenue jumping 32% year-over-year to $13.62 billion. It was boosted in part by a new partnership with ChatGPT-maker OpenAI. YouTube ad revenue also outperformed, pulling in $9.8 billion.
With the stellar numbers, Alphabet is going full throttle on AI investments. It plans to spend $85 billion—$10 billion more than previously forecasted—as it ramps up AI infrastructure in 2025. More spending is expected in 2026.
CEO Sundar Pichai noted the company’s AI-driven products, like Gemini and AI Overviews, are gaining serious traction.
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AI Overviews now has 2 billion+ monthly users in over 200 countries, up from 1.5 billion last quarter.
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The Gemini AI app has amassed over 450 million active monthly users.
On the downside, operating expenses ballooned 20% to $26.1 billion, driven in part by a $1.4 billion legal charge from a privacy settlement.
The company’s “Other Bets” segment, which includes self-driving Waymo cars, reported a $1.25 billion loss.