Alphabet reported second-quarter results that beat on revenue and earnings, but the company said it would raise its capital investments by $10 billion in 2025.
The company’s overall revenue grew 14% year over year, higher than the 10.9% Wall Street expected, but Alphabet is going to spend more on artificial intelligence in 2025 than it anticipated.

Download NOW Q2 2025 Communication Services including Alphabet evaluation
In February, the company said it expected to invest $75 billion in capital expenditures in 2025 as it continues to expand on its AI strategy. That was already above the $58.84 billion Wall Street expected at the time.
The company reported revenue of $13.62 billion for its cloud computing business, which is a 32% increase from a year ago. Last week, OpenAI announced that it expected to use Google’s cloud infrastructure for its popular ChatGPT service. Alphabet CEO Sundar Pichai said “we are very excited to be partnering with them.”

Alphabet’s net income increased to $28.20 billion, up nearly 20% from the previous year.
The company’s search and advertising units still showed growth in the second quarter despite AI competition heating up. The company’s search unit brought in $54.19 billion during the quarter, and its advertising revenue grew to $71.34 billion — up about 10.4% from $64.61 billion the year prior.
YouTube advertising revenue came in at $9.8 billion, higher than Wall Street expected.