Alphabet Q2 2025 Earnings Highlights AI Growth Across Google Cloud and Search

Google and Alphabet CEO Sundar Pichai highlighted robust performance across the company's core businesses during the Q2 2025 earnings call, with artificial intelligence (AI) serving as a key growth driver.

Key Financial and Product Highlights

• Search revenue grew double-digits, fueled by AI features like AI Overviews (now with 2B+ monthly users) and AI Mode (100M+ active users in U.S./India).
• YouTube Shorts monetization reached parity with traditional instream ads in the U.S., with some markets exceeding it.
• Google Cloud hit $50B annual run-rate, signing twice as many $250M+ deals YoY and matching 2024's $1B+ deals in just H1 2025.
• Waymo expanded operations in 4 cities and surpassed 100M autonomous miles driven.

AI Infrastructure and Innovation

Pichai emphasized Alphabet's "full-stack" AI advantage:

• TPU/GPU infrastructure powers nearly all generative AI unicorns and research labs like Safe Super Intelligence.
• Gemini 2.5 models now serve 9M developers, while Veo 3 video generation created 70M+ clips since May.
• AI token processing doubled from 480T to 980T monthly since I/O 2025.

Product-Specific Developments

Search

• AI Overviews drive 10%+ additional queries globally
• Multimodal search (Lens + AI) growing fastest among young users

Cloud

• 85K+ enterprises use Gemini (35x YoY growth)
• New storage innovations reduce inference latency by 70%

YouTube

• 200B+ daily Shorts views
• NFL Friday game to stream live from Brazil in September

Waymo

• Expanded service areas in Austin, LA, and Bay Area by 50%
• Launched teen rider accounts (14-17) in Phoenix

Pichai concluded by thanking employees for delivering "a standout quarter" across all business units.