Alphabet quarterly earnings lifted by cloud and AI

NEW YORK

Google parent Alphabet has reported profit of $34.5 billion in the recently ended quarter, powered by its cloud computing and artificial intelligence operations.

Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion. 

Alphabet chief executive Sundar Pichai said the strong quarterly results reflect healthy growth and momentum across the business.

"Underpinning this growth is our unique full stack approach to AI," Pichai said in an earnings release.

He touted the latest Gemini software as Alphabet's most intelligent AI model and an "extraordinary foundation" for the Silicon Valley company's innovation.

"Cloud grew rapidly with significant demand for our solutions," Pichai said of Alphabet's services and tools hosted at data centers.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence.

"Cloud's growth indicates that Google AI product mix continues to thrive despite heightened competition," said Emarketer principal analyst Yory Wurmser.

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Meanwhile the online ad business that churns out the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

U.S. government attorneys are urging a federal judge to make Google spin off its Chrome browser, arguing artificial intelligence is poised to ramp up the company's online search dominance.