Google CEO Sundar Pichai: ‘AI Is Positively Impacting Every Part Of The Business’

‘Our AI infrastructure investments are crucial to meeting the growth and demand from cloud customers,’ the cloud giant’s CEO said during Google parent company Alphabet’s Q2 2025 earnings call.

Google parent company Alphabet increased its profits in the first half of 2025, propelled by considerable, double-digit growth in Google Cloud Platform (GCP), AI infrastructure, and generative AI offerings.

Google Cloud’s strong momentum in both backlog and profitability was driven by what Alphabet and Google CEO Sundar Pichai called “significant demand” for Google’s comprehensive AI product portfolio during the Mountain View, Calif.-based tech giant’s Q2 2025 earnings call on Wednesday.

As a result, GCP’s annual revenue run rate is now more than $50 billion, Pichai said.

“AI is positively impacting every part of the business,” Pichai said. “I think we’ll be able to drive growth in [subscriptions] based on our AI offerings, and so it’s definitely an area we are both excited by, and we are actually seeing traction, particularly in the last quarter.”

Alphabet’s so-called “full-stack approach” to bringing AI to people and businesses around the globe includes AI infrastructure, models and tooling, and products and platforms. Google’s AI infrastructure includes a global network of AI-optimized data centers and cloud regions. Pichai said that the company offers the industry’s widest range of Tensor Processing Units (TPUs), or specialized microchips developed by Google to accelerate machine learning workloads, and GPUs, along with storage.

“That’s why nearly all GenAI unicorns use Google Cloud, and it’s why a growing number, including leading AI research labs like Safe Superintelligence and Physical Intelligence use TPUs specifically,” he said. “Our AI infrastructure investments are crucial to meeting the growth and demand from cloud customers.”

Google/Alphabet Q2 2025 Results

Google Cloud increased its revenue to $13.62 billion for the quarter, up 32 percent year over year from $10.35 billion a year ago, which the company attributed to growth in GCP across core GCP products, AI infrastructure, and generative AI solutions.

The company’s CFO, Anat Ashkenazi, added that Google Cloud signed multiple multibillion-dollar deals in the first half of the year. In fact, the number of Google Cloud’s deals over $250 million doubled year over year.

“In cloud … the demand for our products is high, as evidenced by the continued revenue growth and the cloud backlog of $106 billion. While we have been working hard to increase capacity and have improved the pace of server deployment, we expect to remain in a tight demand supply environment going into 2026,” she said.

Pichai said that the number of new GCP customers increased by nearly 28 percent quarter over quarter and more than 85,000 enterprises, including Salesforce, are now building with Gemini, which has driven 35X growth in Gemini usage year over year, he added.

The company sees more investment opportunities, especially related to servers and the accelerated pace of data center construction to meet cloud customer demand, Ashkenazi said.

Alphabet’s revenue for the quarter was $96.43 billion, up 14 percent from one year prior, which the company said reflected robust momentum across the business, including Google services, subscriptions, and GCP. Net income was up 19 percent year over year to $28.20 billion and diluted earnings per share was $2.31, up 22 percent from last year’s $1.89 per share.

Alphabet’s stock traded at $194.74 in after-hours trading Wednesday, up more than 3 percent.