Google’s latest quarterly report shows a 30% increase in profit to $34.5 billion and 18% revenue growth to $113.8 billion. Its digital ad sales soared to $82.3 billion, up 14%, while Google Cloud’s revenue jumped 48% to $17.7 billion. Alphabet plans to spend $175-185 billion this year to enhance its AI capabilities.

The success of Google’s search and advertising business, paired with its AI advancements, has boosted Alphabet’s stock price by 60% in the past five months. Despite concerns about sustaining growth, Apple recently struck a deal to use Google’s Gemini technology in its virtual assistant Siri, recognizing Google’s AI prowess.

Alphabet’s capital expenditures, primarily targeting AI expansion, totaled $91 billion, with an additional $175-185 billion to be spent this year. This aggressive spending strategy, representing nearly half of its 2025 revenue of $403 billion, aims to strengthen Google’s differentiation and competitiveness in the evolving AI landscape.

Google faced potential setbacks in 2024 when a federal judge deemed its search engine a monopoly. However, the judge rejected a breakup proposal, citing AI’s potential to curb Google’s dominance. Both the U.S. Justice Department and Google are appealing the decision, highlighting the crucial role of AI in shaping the tech industry’s future.

Read more at Yahoo Finance: Google’s quarterly results paint a picture of an internet powerhouse getting stronger in AI age