Google’s CEO says ‘AI is positively impacting each a part of the enterprise’
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 mentioned that “AI is positively impacting each a part of the enterprise” and that options like AI Overviews and AI Mode are “performing properly.”
The corporate can be planning to extend its deliberate capital expenditures for the yr as much as $85 billion, based on Pichai. That’s a rise of $10 billion, and might be an indication that Alphabet desires to maintain tempo with large information middle buildouts from firms like OpenAI and Meta. “Our up to date outlook displays extra funding in servers, the timing of supply of servers, and an acceleration within the tempo of datacenter building, primarily to fulfill cloud buyer demand,” CFO Anat Ashkenazi mentioned throughout Alphabet’s Q2 earnings name.
For the quarter, Alphabet reported income of $96.4 billion, up 14 p.c yr over yr, with revenues for its “Google Search” phase reaching $54.1 billion.
Pichai’s feedback within the press launch on AI align with current findings from Pew, which steered that AI Overviews seem to achieve success at getting individuals solutions however on the expense of clicks by means of to the web sites that may in any other case provide them.
AI Mode additionally has greater than 100 million month-to-month lively customers within the US and India, whereas AI Overviews has greater than 2 billion month-to-month customers throughout “greater than 200 international locations and territories and 40 languages,” Pichai mentioned through the name. “We’re additionally seeing that our AI options trigger customers to go looking extra as they be taught that Search can meet extra of their wants,” which is “very true for youthful customers.” Pichai additionally mentioned that the Gemini app now has 450 million month-to-month lively customers, “with every day requests rising over 50 p.c from Q1.”
On the identical time, Google is anticipating the ruling from the treatment part of the Division of Justice’s lawsuit, which happened through the second quarter as properly. Final August, a choose dominated that Google “is a monopolist” in that antitrust case, and treatments might embrace Google getting damaged up. (Lots of firms have expressed curiosity in shopping for Chrome.)
Replace, July twenty third: Added particulars from Alphabet’s earnings webcast.