Google’s Alphabet has reported a revenue surge of 15 per cent year over year to $88.3 billion, reflecting ‘strong momentum’ across the business, the firm said in its financial reports published on Tuesday.

Chief executive Sundar Pichai described the company’s earnings results as “extraordinary”, citing AI as the main driver behind the growth.

“Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools,” he said.

The report revealed that Google Cloud revenues increased by 35 per cent to $11.4 billion, with Alphabet linking the surge to accelerated growth in Google Cloud Platform (GCP) across AI iInfrastructure, generative AI solutions, and core GCP products.

“In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals,” added Pichai. “And YouTube’s total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time.”

Google Services earnings also increased 13 per cent to $76.5 billion, led by strength across Google Search, Google subscriptions, platforms, and devices, and YouTube ads.

The chief executive said that the firm is in the process of expanding its AI features in Google Search, with the firm looking to integrate more innovative search solutions for Google users.

Google has been massively investing in AI development over the past two years. In 2023, it invested $2 billion into Anthropic to boost its AI models in the Google Cloud.

In April, the firm announced the launch of a $75 million AI Opportunity Fund to invest in AI upskilling and infrastructure, as well as new data centres across the world to support further AI development.

Earlier this month, Google announced the Gemini app team which serves as the direct consumer interface for Alphabet’s advanced AI Gemini models, had joined Google DeepMind. The move is part of a strategy aimed at accelerating the development of new AI models within the Gemini app.

“We are currently evaluating the potential effect the reorganisation will have on our segment operating results,” the chief executive said.

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