How is Alphabet's Google Cloud powering the generative AI economy?

Alphabet CEO Sundar Pichai revealed that nearly all generative AI unicorns, along with leading research labs, now rely on Google Cloud's infrastructure for their AI needs.

What impact are AI integrations having on Google Search?

AI overviews and AI mode are reshaping how users interact with Google Search, contributing to a 10% increase in global search for the types of queries that display them.

What is driving Alphabet's strong Q2 2025 performance?

Robust growth across Alphabet's core businesses, including double-digit revenue growth in Search, and accelerating momentum in artificial intelligence (AI) are key factors behind the company's "standout quarter."

Home / Business and Economy / Alphabet Emerges as AI Powerhouse, Fueling Gen AI Unicorns on Google Cloud

Alphabet Emerges as AI Powerhouse, Fueling Gen AI Unicorns on Google Cloud

4 Aug

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Summary

Alphabet's Q2 earnings marked by double-digit revenue growth and AI momentum
Google Cloud now powers nearly all generative AI unicorns and leading research labs
AI integrations reshaping Google Search, with 10% increase in global search queries

Alphabet Emerges as AI Powerhouse, Fueling Gen AI Unicorns on Google Cloud

In its Q2 2025 earnings call, Alphabet Inc. (GOOG) (GOOGL) reported a "standout quarter" marked by double-digit revenue growth across core segments and accelerating momentum in artificial intelligence (AI). CEO Sundar Pichai stated that AI now permeates nearly every corner of Alphabet's ecosystem, from Search to Cloud, YouTube to Workspace, as the company's transformation into a full-stack AI powerhouse takes clear shape.

Perhaps the most eye-catching claim of the call was Pichai's statement that "Nearly all Gen AI unicorns use Google Cloud," underscoring Alphabet's emergence as the foundational infrastructure layer for the generative AI economy. Google Cloud now commands a $50 billion annual revenue run rate, with enterprise demand accelerating significantly. Deals over $250 million have doubled year-over-year, and the number of new GCP customers grew 28% quarter-over-quarter.

Beyond search, Alphabet's strong performance was driven by robust growth in its core businesses. Search experienced double-digit growth, bolstered by new features like AI mode and AI overviews, which now contribute to over 2 billion monthly users across more than 200 countries and territories. These AI integrations are reshaping how users interact with Google, with AI overviews alone responsible for a 10% increase in global search for the types of queries that display them.

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