YouTube advertising revenues also grew strongly to $10.3 billion from $8.9 billion.
But it was Google Cloud that stole the spotlight, with revenues soaring 34% to $15.2b. The cloud division, which competes with Amazon Web Services and Microsoft Azure, has become a key growth engine for Alphabet.
The company’s ambitious approach to offering AI “is delivering strong momentum and we’re shipping at speed,” Pichai said, highlighting the global rollout of AI features in Google Search and the company’s Gemini AI models.
The company said its Gemini App now boasts over 650 million monthly active users.
However, the results were partially overshadowed by a $3.5 billion fine imposed by the European Commission in September for competition law violations in its ad tech business.
Excluding this penalty, operating income would have increased 22% instead of the reported 9%, the company said.
The strong performance comes as Alphabet ramps up capital spending to meet surging demand for AI infrastructure.
The company now expects 2025 capital expenditures of between $91-$93b, reflecting massive investments in data centres and computing power to fulfil its AI ambitions.
The company also reported having over 300 million paid subscriptions across services like Google One and YouTube Premium.
Despite the robust growth, Alphabet’s experimental “Other Bets” division, which includes autonomous vehicle unit Waymo, posted a loss of $1.4b on revenues of just $344 million.
Google’s shares have surged by nearly 40% in the third quarter, with investors also buoyed by the company’s success in persuading a federal judge to deny a US Government request that it sell off its Chrome browser as a solution in an antitrust trial.
The judge was swayed by arguments that Google’s world-dominating search engine – the heart of Google’s business – faces stiff competition from ChatGPT and other AI chatbots.
-Agence France-Presse
