Alphabet, the owner of Google, posted quarterly results that exceeded market expectations in the second quarter, supported by strong growth in cloud computing and AI businesses, as the company continues to pour massive investments into enhancing its capabilities in this field.

The company announced on Wednesday that its revenue increased by 24 percent year-on-year to more than $119 billion during the period between April and June.

The cloud computing sector recorded revenues exceeding $24 billion, after growing by more than 80 percent compared to the same period last year, surpassing investor expectations who are looking for signs of success of the company's AI investments.

CEO Sundar Pichai said the strong performance was driven by the continued growth of Gemini AI models, increased use of AI-enhanced search, in addition to the strong performance of YouTube, which attracted more than 1.7 billion unique viewers for content related to the 2026 FIFA World Cup.

Pichai added: "Our investments in AI are redefining possibilities across all our businesses," noting that the Gemini app has reached 950 million monthly active users.

The company's net profit also jumped to more than $112 billion during the second quarter.

Despite the strong results, Alphabet's stock fluctuated in after-hours trading, and at one point fell by up to 3 percent.

Major US technology companies continue to spend billions of dollars to expand AI infrastructure and develop more advanced models.

Alphabet had announced in June a plan to raise up to $80 billion through a stock offering to fund its AI investments, with Warren Buffett's Berkshire Hathaway committing to invest $10 billion.

The company's capital expenditure in the second quarter reached $44.9 billion, nearly double its level a year earlier, but slightly below analysts' expectations of $45.1 billion.

Alphabet's AI-related capital expenditure is expected to range between $180 billion and $190 billion in 2026, with additional increases expected in 2027.

This spending comes amid a broad race among major technology companies, as Amazon, Microsoft, Alphabet, and Meta are expected to invest a combined $700 billion this year in AI data centers, chips, and computing infrastructure.\"); googletag.cmd.push(function() { onDvtagReady(function () { googletag.display('div-gpt-ad-3341368-4'); }); }); }