Google CEO Says AI Is Boosting All Parts of the Business as Revenue Rises 14% in Q2 2025

Google’s CEO, Sundar Pichai, has emphasized that AI is having a positive impact across all areas of the company’s operations. In a press release for Alphabet’s second-quarter 2025 earnings, he stated that AI-driven features such as AI Overviews and AI Mode are performing well, signaling the company’s deepening integration of artificial intelligence into its core services. Alphabet reported total revenue of $96.4 billion for the quarter, a 14% increase compared to the same period last year. The Google Search segment alone brought in $54.1 billion, highlighting the continued dominance of its search business. Pichai also announced that the company is raising its annual capital expenditures to $85 billion, up by $10 billion. This increase is attributed to expanded investments in servers, data center construction, and meeting growing cloud customer demand. CFO Anat Ashkenazi noted during the earnings call that the timing of server deliveries and the accelerated pace of data center expansion are key factors in the updated outlook. AI Mode, which offers an AI-powered search experience, has more than 100 million monthly active users in the U.S. and India, while AI Overviews, a feature that provides concise summaries of search results, reaches over 2 billion users across more than 200 countries and 40 languages. Pichai mentioned that these AI tools are encouraging users to search more frequently, particularly younger users who are discovering that Google Search can fulfill a wider range of their needs. The Gemini app, Google’s AI chatbot, now has 450 million monthly active users, with daily requests increasing by more than 50% compared to the first quarter. This growth underscores the company’s progress in expanding its AI offerings and user engagement. Meanwhile, Google is preparing for the outcome of the Department of Justice’s antitrust case. During the second quarter, the court reached a ruling that classified Google as a monopolist in the search market. Potential remedies could involve restructuring the company, including the possibility of breaking it up, which has already drawn interest from other firms looking to acquire parts of its business, such as Chrome.