Google Ups Capex Guidance to At Least $180B as AI Spending Balloons

Alphabet reported Q2 revenue of $119.8 billion, up 24% year-over-year and beating analyst estimates of $116.9 billion, driven by a 82% surge in Google Cloud revenue to $24.8 billion from enterprise AI solutions. The company raised its capital expenditure guidance to at least $180 billion for the year as AI spending balloons, with earnings per share of $9.11, a 294% increase from a year ago.

The numbers $119.8 billion: Alphabet’s Q2 revenue, up 24% year-over-year YoY , and outpacing analyst projections of $116.9 billion. $94.5 billion: Revenues from Google Services, which includes advertising, subscriptions, digital content, and hardware, up 15% YoY. $24.8 billion: Google Cloud revenue, up 82% YoY thanks to its enterprise AI solutions and enterprise AI infrastructure businesses, and above analyst estimates of $22.46 billion. 34%: Alphabet’s operating margin, up 2%. $9.11: Earnings per share, representing a 294% increase over the same period last year. 22 billion: Number of API tokens processed per minute by Gemini. 950 million: Monthly active users of the Gemini app.