Athira Sethu
Kochi, 25 April 2025
Google’s parent firm, Alphabet reported robust profits of $34.5 billion for the final quarter. This was largely due to its cloud services and artificial intelligence technology. Alphabet overall earned $90.2 billion in revenue, an increase of 12% from the same period last year. Its cloud business alone generated $12.3 billion, up 28%.
Alphabet CEO Sundar Pichai stated that the company was expanding well across a number of fields. He attributed their achievements in AI, particularly with the introduction of the Gemini software. He referred to Gemini as their wisest AI so far and a solid foundation for future progress.
After this positive news, Alphabet’s stock value increased by over 3% post-market hours. According to Pichai, there is huge demand for their cloud services and software, which are housed and executed in data centers of enormous power.
Despite this, some investors fear that Google is overexpenditure on AI. Google is investing billions in new technology, but new entrants such as China’s DeepSeek provide similar AI models at a lower cost.
Meanwhile, Google is facing a legal issue in the United States. The American government claims that Google has an excessive influence in online search and requests the firm to reform. One proposal is to split Google’s Chrome web browser from the rest of its business. According to the government, Google’s move could place too much control over AI and the internet overall in the hands of the company.
Google opposes and maintains these changes would be detrimental to users and U.S. tech dominance. It’s also defending another case in which a judge stated Google enjoyed a monopoly over online advertising. This matters since advertising generates the majority of Google’s revenue and subsidizes products like Gmail, Search, and Maps.
Alphabet is challenging both court decisions, seeking not to be required to break up its company.
