Google had a big quarter thanks to Search and AI

Google has earned nearly $85 billion in recent months as revenue from its search and cloud computing businesses has soared. This is in line with the second quarter earnings report released by Google’s parent company, Alphabeton Tuesday, which says Search alone raised $48.5 billion.

Meanwhile, Google’s cloud division reached $10 billion for the first time, while also reaching $1 billion in operating profit. During an earnings call on Tuesday, Google CEO Sundar Pichai said the company’s generative AI solutions for cloud customers “have already generated billions in revenue and are being used by more than 2 million developers.”

“We are innovating at every layer of the AI ​​stack,” Pichai said in a letter to investors. “Our long-standing infrastructure leadership and internal research teams position us well as technology evolves and we pursue the many opportunities that lie ahead.” Earlier this month, Google reportedly considered acquiring startup Wiz for $23 billion to help bolster its cloud security portfolio, but Wiz passed on the deal to move forward with an initial public offering, according to CNBC.

This week, Google also announced that it is abandoning its long-delayed plans to eliminate third-party cookies by default, something that Safari and Firefox already do. Instead, Google Chrome will ask users to “make an informed choice that applies to your web browsing.” During Google’s earnings call, Pichai said he believes “user choice is the best path forward,” adding that the company will continue to “invest in privacy-enhancing technologies” while receiving “feedback from ecosystem participants.”

Other areas of Alphabet also saw growth. Google’s advertising business soared to $64.6 billion, while YouTube ads increased 13% year over year to $8.6 billion. The division that includes subscriptions, platforms and devices had revenues of US$9.3 billion. Google will likely see another big boost in business following its earlier-than-usual hardware event in August, where it will launch the already-revealed Pixel 9 and Pixel 9 Pro Fold.

Correction, July 23: An earlier version of the article erroneously stated that Google made $85 million when it actually made $85 billion.