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Alphabet's AI-Powered Search Dominance Soars, Boosting Google Cloud
8 Aug
Summary
- Alphabet's Q2 2025 results show AI boosting Search and driving Google Cloud growth
- Google Search handles over 5 trillion queries annually, with 89.66% market share
- Google Cloud revenue surges 31.7% YoY, with annual run rate exceeding $50 billion
In the second quarter of 2025, Alphabet's GOOGL shares have appreciated 11.3%, outperforming the broader tech sector's 3.8% gain. This outperformance can be attributed to the company's strong Q2 2025 results, which showcased the benefits of AI integration across its core Search business and a surge in Google Cloud revenues.
Google Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing analyst estimates. The company continues to dominate the search market, handling over 5 trillion queries annually and commanding an 89.66% market share. Alphabet has been actively embedding AI within Search to enhance user experience and improve ad performance.
Alongside its Search prowess, Google Cloud revenues soared 31.7% year over year to $13.62 billion, accounting for 14.1% of the quarter's total revenues. The cloud division's annual revenue run rate now exceeds $50 billion, driven by growth in Google Cloud Platform, AI Infrastructure, and Generative AI Solutions. This strong performance has helped Alphabet outpace its closest cloud computing rivals, Microsoft and Amazon.
