Alphabet's Cloud Biz Aims for $50B by 2025 as AI Boosts Business

Alphabet, the parent company of Google, has reported strong quarterly profits, with its cloud computing business on pace to bring in $50 billion in revenue over the course of 2025. The tech giant says artificial intelligence (AI) is positively impacting every part of its business, driving robust momentum across search, YouTube, and cloud services.

In the second quarter, Alphabet's profit reached $28.2 billion on $96.4 billion in revenue. The company plans to invest more than its previously planned $85 billion on capital expenditure in 2025, as it spends heavily on AI infrastructure to meet growing demand for its cloud products and services.

"We had a standout quarter, with robust growth across the company," said Alphabet CEO Sundar Pichai. "AI is positively impacting every part of the business, driving strong momentum."

Alphabet's cloud computing division is on track to generate $50 billion in revenue this year, underscoring the growing demand for the company's cloud services. The tech giant is also seeing strong growth in its search and YouTube businesses, with features like AI Overviews and the recently launched AI mode performing well.

Despite the positive financial results, Alphabet faces ongoing antitrust battles, with a federal judge finding the company guilty of illegal practices to maintain its online search monopoly. The company is appealing the ruling, which could lead to significant changes in its business model.