Google is all-in on AI, and based mostly on the corporate’s newest quarterly earnings, AI has been good for its backside line. In a press launch for Alphabet’s Q2 2025 earnings, CEO Sundar Pichai stated that “AI is positively impacting each a part of the enterprise” and that options like AI Overviews and AI Mode are “performing nicely.”
The corporate can be planning to extend its deliberate capital expenditures for the 12 months as much as $85 billion, based on Pichai. That’s a rise of $10 billion, and may very well be an indication that Alphabet desires to maintain tempo with huge information middle buildouts from corporations like OpenAI and Meta. “Our up to date outlook displays further funding in servers, the timing of supply of servers, and an acceleration within the tempo of datacenter development, primarily to fulfill cloud buyer demand,” CFO Anat Ashkenazi stated throughout Alphabet’s Q2 earnings name.
For the quarter, Alphabet reported income of $96.4 billion, up 14 p.c 12 months over 12 months, with revenues for its “Google Search” section reaching $54.1 billion.
Pichai’s feedback within the press launch on AI align with recent findings from Pew, which instructed that AI Overviews seem to achieve success at getting folks solutions however on the expense of clicks by means of to the web sites that might in any other case supply them.
AI Mode additionally has greater than 100 million month-to-month energetic customers within the US and India, whereas AI Overviews has greater than 2 billion month-to-month customers throughout “greater than 200 nations and territories and 40 languages,” Pichai stated through the name. “We’re additionally seeing that our AI options trigger customers to look extra as they be taught that Search can meet extra of their wants,” which is “very true for youthful customers.” Pichai additionally stated that the Gemini app now has 450 million month-to-month energetic customers, “with every day requests rising over 50 p.c from Q1.”
On the identical time, Google is anticipating the ruling from the treatment section of the Division of Justice’s lawsuit, which occurred through the second quarter as nicely. Final August, a decide dominated that Google “is a monopolist” in that antitrust case, and treatments may embody Google getting broken up. (Lots of corporations have expressed curiosity in buying Chrome.)
Replace, July twenty third: Added particulars from Alphabet’s earnings webcast.