Google Surpasses $400 Billion in Annual Revenue for the First Time: AI Investment in Numbers

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Google Surpasses $400 Billion in Annual Revenue for the First Time: AI Investment in Numbers

  • First time surpassing $400 billion in annual revenue in 2025, 18% growth compared to the previous year
  • Google Cloud grows rapidly by 48%, annual run rate of $70 billion
  • Capital expenditure to double in 2026 to $175 billion ~ $185 billion

What Happened?

Alphabet announced its Q4 2025 results. Annual revenue surpassed $400 billion for the first time.[The Verge] Q4 revenue was $113.8 billion, an 18% increase year-over-year.[9to5Google]

Google Cloud led the growth. Q4 revenue was $17.66 billion, exceeding an annual run rate of $70 billion. YouTube also achieved $60 billion annually. Gemini has 750 million monthly users.[Finviz]

Why Does It Matter?

It shows Google’s unique position among Big Tech companies. It’s the result of successfully layering cloud and AI on top of search advertising.

The 48% growth of the cloud is key. It ranks third after AWS and Azure, but its growth rate is the fastest. The surge in AI workloads is leveraging the power of TPU infrastructure.

What Happens Next?

Alphabet has announced capital expenditures of $175 billion to $185 billion for 2026. This is almost double that of 2025. It is expected to focus on expanding data centers and securing AI chips.

Frequently Asked Questions (FAQ)

Q: Can Google Cloud catch up with AWS?

A: AWS has a larger market share, but Google is growing faster. 48% exceeds AWS and Azure. If it leverages its strengths in AI workloads, it can narrow the gap. A complete reversal will take time.

Q: Where will the $175 billion in capital expenditure be used?

A: Most of it will be invested in AI infrastructure. Major items include data center construction, securing GPUs and TPUs, and expanding power infrastructure. It is a foundational investment to strengthen the Gemini platform.

Q: How does Gemini’s 750 million users compare to ChatGPT?

A: ChatGPT has over 300 million weekly active users. Gemini’s 750 million is a monthly figure, so direct comparison is difficult. Thanks to the Android ecosystem, the spread is rapid.

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