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Alphabet Hits $400B Revenue Milestone in 2025, Fueled by AI Boom

Alphabet, Google's parent company, has surpassed $400 billion in annual revenue for the first time in 2025. The growth was powered by a 17% year-on-year increase in search and a 48% revenue surge for Google Cloud, now on a $70 billion annual run rate. Revenue from generative AI products grew nearly 400% year-over-year in Q4, with the Gemini App reaching over 750 million monthly active users. Looking ahead, Alphabet plans to invest $175-185 billion in 2026 to expand its AI infrastructure and data center capacity.

Key Points: Alphabet Revenue Tops $400B in 2025 as AI Drives Growth

  • Annual revenue exceeds $400B first time
  • Search revenue grew 17% YoY
  • Google Cloud revenue surged 48%
  • AI product revenue grew nearly 400% YoY
  • Capex forecast of $175-185B for 2026
2 min read

Alphabet's annual revenues exceed $400 billion first time in 2025

Alphabet's annual revenue surpasses $400 billion for the first time, driven by 17% search growth and a 48% surge in Google Cloud revenue.

"Search saw more usage in Q4 than ever before, as AI continues to drive an expansionary moment - Alphabet Earnings Report"

New Delhi, February 5

Google's parent company Alphabet has exceeded USD 400 billion in annual revenues for the first time in 2025, according to the earnings highlights posted by Google CEO, Sundar Pichai.

Google CEO Sundar Pichai took to his social media account and described the quarter as "tremendous," attributing the success to a fundamental expansion in Search and Cloud services fueled by the company's maturing AI ecosystem.

The tech giant also saw a year-on-year growth of 17 per cent in search engine. "Search saw more usage in Q4 than ever before, as AI continues to drive an expansionary moment," the earnings report highlighted.

Google Cloud saw its revenues grow 48 per cent, now on an annual run rate of over USD 70 billion. Backlog grew by 55 per cent quarter over quarter to USD 240 billion, representing a wide breadth of customers, driven by demand for AI products.

"In Q4, revenue from products built on our generative AI models grew nearly 400% year-over-year, significantly accelerating from the prior quarter," the earnings stated.

As for YouTube, its annual revenue surpassed USD 60 billion across ads and subscriptions.

In terms of the AI Infrastructure, the earnings report highlights lower Gemini serving unit costs by 78 per cent over 2025 through "model optimizations, efficiency and utilization improvements."

"The launch of Gemini 3 was a major milestone and is driving real momentum and business results across the company," earnings report mentioned.

Gemini App now has over 750 million monthly active users. The company is also seeing significantly higher engagement per user, especially since the launch of Gemini 3 in December.

Looking toward 2026, Alphabet is doubling down on its infrastructure lead. The company announced a substantial increase in its capital expenditure forecast, with 2026 investments anticipated to be in the range of USD 175 billion to USD 185 billion. This spending will focus on expanding data centers and AI computing capacity.

- ANI

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Reader Comments

P
Priyanka N
Amazing numbers, but I hope this success translates into more investment and job creation in India's tech hubs like Bengaluru and Hyderabad. Our talent pool is world-class and can drive the next phase of AI innovation.
R
Rahul R
$400 billion is a mind-boggling figure. Just for perspective, that's more than the GDP of many countries! The Cloud growth at 48% shows how deeply embedded Google is in the enterprise world now.
A
Aman W
With great power comes great responsibility. I respect the achievement, but I hope Alphabet uses this financial muscle to address digital divides, especially in rural India where internet access is still a challenge.
K
Kavya N
The cost reduction for Gemini by 78% is the real story here. Making AI cheaper to serve means it can reach more people and small businesses. Excited to see what local Indian startups build on this platform! 🚀
M
Michael C
As someone working in tech, the scale of investment for 2026 - nearly $185 billion - is unprecedented. This is an all-in bet on AI infrastructure. The global race for compute power is truly on.

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