Google is accelerating its AI efforts: cloud revenue up 82 per cent and profits quadrupled
However, there are still unknowns. This is holding back the search. And the postponement of the launch of the new Gemini 3.5 Pro model has fuelled doubts about competitiveness in AI tools for programming, in a market where OpenAI, Anthropic and Chinese open-source models are gaining ground
Alphabet is being driven by AI, although its core business in online search services is, by contrast, experiencing some slowdown. The American tech giant, the first of the US tech giants in the sector – which have so far been driving Corporate America and the stock market – to report its results, exceeded Wall Street’s forecasts thanks to strong growth at Google Cloud, fuelled precisely by demand for artificial intelligence-related services.
In the quarter ending in June, the cloud division’s revenue rose by 82 per cent compared with last year, reaching $24.8 billion. This figure marks an acceleration from the 63 per cent growth recorded in the previous quarter and is significantly higher than the average 64 per cent growth expected by analysts.
Advertising revenue from search, however, fell slightly short of expectations: the figure of 63.27 billion was lower than the 63.28 billion forecast by analysts.
Overall, the company’s turnover rose to 120 billion from 96.4 billion, exceeding forecasts by around three billion.
Profits quadrupled to 112 billion, significantly exceeding pre-announcement estimates of 35.6 billion. This was driven by gains on investments, including a stake in Elon Musk’s SpaceX.
