{"id":117106,"date":"2026-07-23T22:36:50","date_gmt":"2026-07-23T22:36:50","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/117106\/"},"modified":"2026-07-23T22:36:50","modified_gmt":"2026-07-23T22:36:50","slug":"alphabet-quadruples-profit-to-112-billion-fueled-by-a-i-investments","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/117106\/","title":{"rendered":"Alphabet Quadruples Profit to $112 Billion, Fueled by A.I. Investments"},"content":{"rendered":"

Alphabet, Google\u2019s parent company, said on Wednesday that its investments in artificial intelligence were paying off and driving growth across its businesses, amid broader questions<\/a> about whether tech companies\u2019 enormous spending on the powerful technology can be justified.<\/p>\n

The Silicon Valley giant, which has shelled out billions to develop cutting-edge A.I. models and to build data centers that provide the computing power for the technology, said revenue for the three months that ended in June totaled $119.8 billion, up 24 percent from a year earlier. In particular, Google\u2019s cloud business, which lets companies rent computing power and A.I. tools, surged 82 percent to $24.8 billion.<\/p>\n

Profit rose to $112.1 billion, quadrupling from $28.2 billion a year earlier, boosted by major investments that Google has made in recent years in other A.I.-related companies like SpaceX and Anthropic. Gains tied to those investments were valued at about $99 billion, Google said, and contributed $77 billion to overall profit, especially with SpaceX going public in June.<\/p>\n

Google also said it would spend more than it previously predicted to build data centers and other technologies for A.I. development. It estimated that spending would hit $195 billion to $205 billion this year, more than double the $85 billion last year and up from an earlier projection of $190 billion.<\/p>\n

\u201cOur A.I. investments are redefining what\u2019s possible across every part of our business,\u201d Sundar Pichai, Alphabet\u2019s chief executive, said in a statement<\/a>.<\/p>\n

The results exceeded Wall Street\u2019s projections of $116.5 billion in revenue and profit of $35 billion.<\/p>\n

Google has been racing to lead in A.I. as the technology transforms jobs, workplaces and the company\u2019s own internet search business. To compete with rivals such as OpenAI and Anthropic, Google said in June that it was raising<\/a> $80 billion to fund its data center projects by selling its stock, before raising its overall spending forecast on Wednesday.<\/p>\n

Some have questioned whether such spending is excessive. Last week, stock markets fell<\/a> because of concerns about increasing A.I. competition from China after a Chinese start-up, Moonshot AI, released an A.I. technology that was nearly as powerful as the leading American model, Claude Fable 5 from Anthropic.<\/p>\n

So far, A.I. has been a boon to Google\u2019s business. The company has melded A.I. into search<\/a>, with its Gemini chatbot generating answers and users assigning A.I. \u201cagents,\u201d or bots, to run continuous searches on their behalf. Advertisers on YouTube have new A.I. tools, and viewers have A.I.-curated video recommendations. And companies are clamoring to use Google\u2019s cloud computing services to run their A.I. projects.<\/p>\n

Google is \u201cone of the best positioned A.I. companies around,\u201d said Brian Nowak, an analyst at Morgan Stanley.<\/p>\n

Demand for Google\u2019s A.I. services has become so intense that the company cannot keep up. Google said its cloud business had a backlog of potential contracts totaling $514 billion, up from $106 billion a year ago. Over half of that backlog will be worked through over the next two years, said Anat Ashkenazi, Google\u2019s chief financial officer.<\/p>\n

Revenue for Google\u2019s advertising business rose 14.4 percent to $81.6 billion in the quarter as users flocked to YouTube and search.<\/p>\n

In May, the company expanded its A.I. offerings in search, overhauling its iconic search bar<\/a> for the first time in 25 years with new A.I. tools<\/a> and adding the ability for people to assign continuous searches to A.I. agents that can act autonomously to function like digital personal assistants. The infusion of A.I. has attracted users, the company said, with its AI Mode chatbot-style search feature reaching one billion monthly active users.<\/p>\n

Google\u2019s subscription business, which includes users who pay for YouTube services and those who pay to use Google\u2019s A.I., rose 15 percent to $12.9 billion. Gemini, the company\u2019s flagship A.I. app, hit 950 million monthly active users, and daily users tripled over the last year, Google said.<\/p>\n

The World Cup soccer tournament also aided search and YouTube, the company said, with search getting its highest-ever use during the event and 1.7 billion people watching World Cup-related clips on YouTube. \u201cThis really highlights how much people turn to Google in moments that matter,\u201d Mr. Pichai said.<\/p>\n

On Tuesday, Google unveiled three A.I. models<\/a>, which are intended to work more effectively and at a lower cost than previous versions. The company\u2019s flagship model, Gemini 3.5 Pro, was set to be released in June but has not been made available. Mr. Pichai said that the Pro model remained in testing and that the company was also testing an additional model, Gemini 4.<\/p>\n

He acknowledged that Google\u2019s models had lagged those of rivals, particularly on coding tasks, but said he expected Gemini 4 would help the company compete.<\/p>\n

\u201cThere are many attributes at which we are still at the frontier,\u201d Mr. Pichai said.<\/p>\n","protected":false},"excerpt":{"rendered":"Alphabet, Google\u2019s parent company, said on Wednesday that its investments in artificial intelligence were paying off and driving…\n","protected":false},"author":2,"featured_media":117107,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[24,2608,25,425,15588,1555,39,132,1429,1153,20466],"class_list":["post-117106","post","type-post","status-publish","format-standard","has-post-thumbnail","category-google","tag-ai","tag-alphabet-inc","tag-artificial-intelligence","tag-cloud-computing","tag-company-reports","tag-computers-and-the-internet","tag-data-centers","tag-google","tag-google-ai","tag-google-inc","tag-search-engines"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/117106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=117106"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/117106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/117107"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=117106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=117106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=117106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}