Bitcoins <\/p>\n
Google\u2019s cloud business grew by more than 80 percent, the company said Wednesday, exceeding investor expectations as markets look for signs that the company\u2019s AI investments are paying off.<\/p>\n
CEO Sundar Pichai said in a statement that the strong quarter was driven in part by growth in its Gemini AI models and AI-powered 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.<\/p>\n
\u201cOur AI investments are redefining what\u2019s possible across every part of our business,\u201d Pichai said, adding that the company\u2019s Gemini AI app had reached 950 million monthly active users.<\/p>\n
The company recorded more than $119 billion in total revenue between April and June, up 24 percent from the same period last year.<\/p>\n
Its cloud business brought in more than $24 billion in the quarter, and net profit skyrocketed to over $112 billion.<\/p>\n
The company\u2019s stock fluctuated after hours and dropped as much as 3 percent.<\/p>\n
Major US tech companies have been spending billions of dollars to build out AI infrastructure and develop increasingly advanced AI models.<\/p>\n
In June, Google parent company Alphabet announced it would raise up to $80 billion in stock to fund its AI efforts, with Warren Buffett\u2019s Berkshire Hathaway committing $10 billion.<\/p>\n
Capital expenditures reached $44.9 billion for the quarter, nearly double the year-earlier level though slightly below the $45.1 billion analysts had expected.<\/p>\n
Alphabet\u2019s AI-related capital expenditures are expected to reach $180-190 billion in 2026 and rise further in 2027.<\/p>\n
The spending is part of a broader race across the tech sector to stay competitive amid soaring demand for computing power.<\/p>\n
Amazon, Microsoft, Alphabet and Meta are collectively on track to pour roughly $700 billion into AI data centers, chips and computing infrastructure this year.<\/p>\n<\/div>\n