Google is fully committed to artificial intelligence (AI), and the company’s most recent quarterly earnings show that AI has improved its bottom line. Sundar Pichai, the CEO of Alphabet, claims in a press statement for the company’s Q2 2025 results that “AI is positively impacting every part of the business” and that features like AI Overviews and AI Mode are “performing well.”
According to Pichai, the business plans to boost its planned capital expenditures for the year to $85 billion. That’s a $10 billion increase, which might indicate that Alphabet wants to stay up with big data center buildouts by businesses like OpenAI and Meta. Alphabet reported $96.4 billion in sales for the quarter, a 14 percent increase year on year, with revenues from its “Google Search” sector hitting $54.1 billion.
Pichai’s comments on AI are consistent with recent Pew research, which found that AI Overviews appear to be effective at getting people answers, but at the expense of clicks through to the websites that would otherwise provide them.
Google held its annual I/O developer conference in the second quarter, and it was packed with announcements about AI, including the introduction of AI Mode for Search (dubbed “theft” by news publishers), improvements to its models for creating images and videos, Gemini AI in Chrome, and much more potent smart replies in Gmail. (Google’s future is Google googling, based on that incident.) Additionally, Google had an Android-focused event immediately before I/O, when it unveiled the new, youthful design language for Android 16.
The Department of Justice’s lawsuit’s remedy phase also took place during the second quarter, and Google is currently awaiting the outcome. In an antitrust lawsuit in August, a court said that Google “is a monopolist,” and one possible remedy was for Google to be dismantled. (Many businesses have shown interest in purchasing Chrome.)
For the first time in almost ten years, the business also changed its “G” logo.
