Alphabet Inc., Google’s parent company, has reported a sharp increase in profits, with net income rising to 112 billion dollars as the technology giant continues to reap returns from its aggressive investments in artificial intelligence (AI).
The company disclosed the figures in its latest quarterly earnings report, attributing the strong performance to rapid growth in its AI products, cloud computing business and YouTube.
Google reported 119 billion dollars in revenue for the April-June quarter, representing a 24 per cent increase compared with the corresponding period last year.
Chief Executive Officer Sundar Pichai said the company’s continued investments in AI were transforming its products and business operations.
“Our AI investments are redefining what’s possible across every part of our business,” Pichai said.
According to him, the quarter was driven by increasing adoption of the Gemini AI model, stronger engagement with AI-powered Search, and robust YouTube viewership.
Google said more than 1.7 billion unique viewers watched content related to the 2026 FIFA World Cup on YouTube during the reporting period.
The company’s cloud computing division also recorded strong growth, generating more than 24 billion dollars in quarterly revenue.
Google said its profitability received a significant boost from gains linked to its AI-related investments in SpaceX and Anthropic.
According to the company, those investments generated approximately 99 billion dollars in valuation gains and contributed about 77 billion dollars to overall profit.
The earnings were also supported by SpaceX’s recent public listing, although the aerospace company’s share price has since declined below its initial public offering price.
Google disclosed that its Gemini AI application has grown to 950 million monthly active users, bringing it closer to OpenAI’s ChatGPT, which reportedly surpassed one billion monthly active users in June.
Chief Financial Officer Anat Ashkenazi said Alphabet invested nearly 45 billion dollars during the quarter, with the majority directed toward expanding AI infrastructure and capabilities.
She added that the company had increased its projected capital expenditure for 2026 to 205 billion dollars, up from the earlier estimate of 190 billion dollars.
According to Ashkenazi, the increase is primarily intended to accelerate infrastructure expansion needed to meet growing demand for AI services.
She said the company also expects capital expenditure to rise significantly again in 2027 as investment in AI infrastructure continues.
Industry analysts say Google’s latest financial results underscore the growing commercial value of artificial intelligence as major technology firms intensify competition in AI-powered search, cloud computing and consumer applications.
