The comment came shortly after analysts peppered Pichai and other Google executives with questions about how AI would affect its core search business and why Google is spending an extra $10 billion on capital expenditures this year to catch up in the AI race.

Google’s accelerating shift into artificial intelligence helped propel its corporate parent to another quarter of solid growth while a crackdown on its internet empire looms in the background

Google is all-in on AI, and based on the company’s latest quarterly earnings, AI has been good for its bottom line. In a press release for Alphabet’s Q2 2025 earnings, CEO Sundar Pichai says that “AI is positively impacting every part of the business” and that features like AI Overviews and AI Mode are “performing well.”

Alphabet beat Q2 expectations with strong ad and cloud revenue, but stayed silent on crypto. Despite backing Web3 infrastructure, Google still holds no Bitcoin or digital assets.

The search giant is spending tens of billions of dollars on infusing its products with artificial intelligence capabilities.

So far, all the YouTube AI video features are running on the Veo 2 model. The plan is still to move to Veo 3 later this summer. The AI features in YouTube Shorts are limited to the United States, Canada, Australia, and New Zealand for the time being, but it will expand to more countries later.

Google Photos isn’t just a place where you can store your photos. It also contains various tools to alter your images however you want. Adding on to the tools you already have, the app is getting two new ones that are powered by AI. And to make these tools easier to find, a new tab is also rolling out.

Alphabet beat Wall Street estimates for quarterly revenue on Wednesday, as the Google parent's new AI features and a steady digital advertising market boosted growth in its core search business.

Google beat earnings expectations across the board — but a surprise $10 billion increase in capex spending is raising fresh concerns about AI costs.