Alphabet sees results soar, boosted once again by soaring AI and cloud demand

• Google revenue is up 14%, driven by a 32% growth in Google Cloud revenue
• The cloud division’s annual revenue run-rate is now $50 billion
• The Gemini App has 450 million monthly active users

Alphabet has exceeded quarterly revenue expectations by a not-so-insignificant $2.43 billion by posting $96.43 billion in its second quarter 2025, marking a health 14% year-over-year increase, with the company having AI and its cloud services to thank.

Google Cloud revenues rose by 32% in the quarter to $13.6 billion – considerably more than the 12% rise in Google Services revenue, which covers areas like Search, subscriptions, devices, YouTube ads and more.

In a blog post breaking down the earnings, CEO Sundar Pichai revealed Google Cloud’s annual revenue run-rate has now passed the $50 billion mark.

Google Cloud boosting Alphabet’s overall revenue

“We are seeing significant demand for our comprehensive AI product portfolio,” Pichai explained in the post.

“We operate the leading global network of AI optimized data centers and cloud regions.”

Pichai added nine million developers have now built with the company’s Gemini 2.5 family of models, while 70 million videos have already been generated using Veo 3, which Pichai described as a “viral hit.”

Speaking about Google Cloud revenue in particular, Pichai revealed the number of large contracts worth more than $250 million has more than doubled year-over-year. Google Cloud also signed the same number of $1 billion+ deals in the first half of 2025 as it did in the whole of 2024.

Wayfair, Mattel, Target, Capgemini and BBVA were cited among Google Cloud’s major clients, with OpenAI also recently confirming that it would use Google Cloud infrastructure to support ChatGPT in the US, the UK, Japan, the Netherlands and Norway.

On the consumer side, the Gemini App now has more than 450 million monthly active users, and daily request have grown by more than 50% since last quarter.

All of this saw stock prices rise by about 3% in after-hours trading, with Google currently ranking as the world’s fifth-most valuable company with a market cap of $2.315 trillion, just a few paces behind Amazon.

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