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5d ago

Alphabet Boosts 2025 Capex to $85 Billion to Fuel AI and Cloud Expansion

Alphabet raised its infrastructure spending to meet surging demand for AI-powered services in its cloud division.

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Figurines with computers and smartphones are seen in front of Alphabet logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

Overview

  • Alphabet reported second-quarter revenue of $96.4 billion, up 14 percent year-over-year, and net income of $28.2 billion, a 19 percent increase.
  • Google Cloud revenue jumped 32 percent to $13.6 billion in Q2, driven by strong demand and a record backlog of customer orders.
  • Usage of AI features surged, with AI Mode exceeding 100 million monthly users, AI Overviews reaching 2 billion users and the Gemini app topping 450 million monthly users.
  • The company raised its full-year capital expenditure forecast by $10 billion to $85 billion to accelerate data center and server build-outs.
  • Alphabet is under heightened regulatory scrutiny after a judge ruled Google a monopolist in the DOJ antitrust case, with remedy decisions expected in Q3.