Google-Parent Alphabet revenue shines with the help of AI
San Francisco, USA, July 24, 2025 (BSS/AFP) – Google -Parent Alphabet on Wednesday said artificial intelligence has boosted every part of the business, reporting quarterly profits.
Alphabet's second quarter profit was $28.2 billion (with revenue of $96.4 billion), and the tech giant believes it is $10 billion more than planned earlier this year to invest in investing to meet the growing demand for cloud services.
“We had an outstanding quarter and we had strong growth across the company,” said Sundar Pichai, CEO of Alphabet.
“AI has a positive impact on every part of the business and drives strong momentum.”
According to Pichai, features such as the AI overview and the recently launched AI mode “Performance” have led to double-digit increase in revenue from searches.
YouTube ad revenue continues to grow alongside the video platform's subscription services, Alphabet reports.
According to the company, Alphabet's cloud computing business is at a pace to win $50 billion a year.
“This strong and strong demand for cloud products and services has increased our investment in capital expenditures to around $85 billion in 2025 and we are excited for the opportunities ahead,” Pichai said.
Alphabet's stock rose nearly 2% in aftermarket trading following the release of revenue figures.
Investors have looked carefully to see if the tech giant spends too much on artificial intelligence and whether the AI-generated summaries of search results are less likely to offer money-making ads.
The Internet giant is dabbing in advertising in a new AI mode for online search. This is a strategic move to dodge competition from ChatGPT while adapting the advertising business to the age of AI.
Ad integration is a key issue with the rise of generator AI chatbots, and has largely avoided disruptions in user experiences with marketing messages.
However, ads remain Google's financial foundation.
“Despite tariff headwinds and intensifying AI competition, Google is on track,” said Yory Wurmser, principal analyst at Emarketer.
“AI overview and AI mode monetization are also successfully monetized. This is a good sign of the future.”
While Google and its rivals are spending billions of dollars on AI on data centers, the rise of low-cost model Deepseek from China has raised doubts about whether it should be spent.
– Antitrust Battle –
Meanwhile, online advertising businesses that generate cash to invest in its future could be castrated due to defeat in the US antitrust law.
In the summer of 2024, Google was found guilty of illegal practices to establish and maintain a monopoly in online searches by federal judges in Washington.
The Department of Justice is currently calling for remedies that can change the digital landscape. The sale from Google's Chrome browser and the introduction of an exclusive agreement with the smartphone maker have prevented the installation of search engines by default.
District Judge Amit Meta is considering “relief” in a decision expected in the coming days or weeks.
In another legal battle, another US judge ruled this year that Google has wielded its monopoly in the online advertising technology market, another legal blow that could rattle Tech Giant's Revenue Engine.
District Court Judge Leonie Brinkema has determined that Google has built an illegal monopoly on the advertising software and tools used by publishers.
In total, a court defeat could split Google and curb its impact.
Google said it is suing both rulings.
