Alphabet Surpasses Q2 Earnings Expectations, Amplifies AI Investment to $85B by 2025
Alphabet, the parent company of Google, has reported robust second-quarter earnings, surpassing Wall Street’s predictions. The company posted earnings of $2.31 per share on a revenue of $96.42 billion, marking a 14% year-over-year growth.
Due to the “strong and growing demand” for cloud products and services, Alphabet has significantly raised its capital expenditure forecast for 2025 from $75 billion to $85 billion.
CEO Sundar Pichai underscored the positive influence of AI across the business. AI Overviews now cater to over 2 billion monthly users across more than 200 countries, a substantial increase from 1.5 billion in the previous quarter. The Gemini app now boasts more than 450 million monthly active users.
Google Cloud’s revenue rose to $13.62 billion, while YouTube advertising generated $9.8 billion. This earnings beat comes as Alphabet intensifies its AI infrastructure investments to stay competitive in the rapidly evolving artificial intelligence landscape.
The increased expenditure mirrors the company’s dedication to preserving its standing in the AI race against rivals such as OpenAI and Microsoft.
Source: CNBC