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Google profits quadruple to $112billion after investments in AI

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Google profits quadruple to $112billion after investments in AI

Google’s profits have quadrupled to $112billion (£84billion), following its investments in AI.
 
In the firm’s latest quarterly update, CEO Sundar Pichai said that the successful quarter was due in part to growth of its AI model Gemini and AI search queries, as well as YouTube, where more than 1.7 billion unique viewers tuned in to videos related to the 2026 FIFA World Cup.
 
‘Our AI investments are redefining what’s possible across every part of our business,’ Pichai said.
 
According to MailOnline, the company recorded more than $119billion in total revenue between April and June, up 24 percent compared to the same period last year.
 
Its cloud business recorded more than $24billion in the quarter, and its net profit quadrupled to over $112billion – boosted massively by its AI-related investments in SpaceX and Anthropic.
 
Google said gains tied to those investments were valued at about $99billion, while contributing to $77billion in overall profit.
 
The boost was also helped by SpaceX going public earlier this month, though the Elon Musk-run company has dropped well below its IPO price of $135 per share, trading this morning at just over $115 per share.
 
Google’s Gemini app has grown to 950 million monthly active users.
 
That puts its AI chat app within striking distance of OpenAI’s ChatGPT, which hit 1 billion monthly active users in June, according to reports.
 
Alphabet spent nearly $45billion in the quarter, ‘the vast majority’ of which went towards AI investments, CFO Anat Ashkenazi said during a call with analysts.
 
The company also increased its capital expenditure (capex) estimate for the full year to as much as $205billion, a jump from $190billion last quarter.
 
The increase is ‘primarily due to an acceleration in the delivery of capacity to meet growing demand,’ Ashkenazi continued. ‘We continue to expect our capex to increase significantly in 2027, and will provide more details at a later date.’

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖

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