Alphabet just pulled in $84.7 billion in revenue for Q2 2025, that is a 14% increase from the same time last year. The key driver? Not just ads or search. It is AI, working quietly (and profitably) behind the scenes. Search ads still run the game. Alphabet made $46.5 billion from Google Search and other ads this quarter, up from $42.6 billion last year. That’s a massive slice of the pie, and AI helped bake it. AI-powered tools are now doing smarter ad placement and better audience targeting, which means higher returns for advertisers and bigger checks for Google. TechPortal
YouTube is also growing fast, and again, AI is in the picture. With new creator tools, recommendation tweaks, and automated captioning systems, YouTube made $8.8 billion this quarter, up from $7.7 billion a year ago. It’s not just about content anymore, it’s about optimizing the entire pipeline from creator to viewer. Reuters
But the surprise player? Google Cloud. For a long time, it lagged behind Amazon and Microsoft. Now? It just raked in $10.3 billion, compared to $8 billion last year. That’s a jump worth paying attention to, and it’s tied directly to Gemini, Alphabet’s generative AI that businesses are now using in everything from emails to data analysis. CNBC. Alphabet’s CFO Ruth Porat (who just got a new title as President & CIO) made it clear: this growth is sustainable because AI is no longer experimental, it’s foundational. CEO Sundar Pichai said the company is only “beginning to realize” AI’s full potential. Translation: AI is here to stay, and it’s printing money.
And just so we’re clear, this isn’t just about new tools or shiny tech. It’s about how Google is integrating AI into products you already use: Search, YouTube, Gmail, Docs, even Android and Pixel hardware. That’s why this matters. The company is not waiting for some distant AI future, it’s already living in it.
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Bottom line? Alphabet isn’t hyping AI. It’s using it, and cashing in.
