Alphabet tops $400B as Gemini 3 fuels AI-driven growth

Alphabet ended 2025 with annual revenues surpassing $400 billion for the first time, underpinned by accelerating AI adoption and strong momentum across Search, Cloud, YouTube and emerging bets like Waymo. CEO Sundar Pichai highlighted the launch of Gemini 3 as a key inflection point, saying the company has “great momentum” heading into 2026.

Search revenues grew 17% year-on-year, reflecting rising engagement as AI-powered features scale across the core product. In the US, daily AI Mode queries per user have doubled, sessions are three times longer, and nearly one in six searches now uses voice or image-based inputs.

YouTube’s annual revenues crossed $60 billion across advertising and subscriptions, cementing its position as the top streaming platform. AI tools now support over one million creators daily, while more than 20 million viewers interacted with AI-powered features on the platform in December alone.

Google Cloud emerged as one of Alphabet’s fastest-growing businesses, with revenues up 48% year-on-year and an annual run rate exceeding $70 billion. Cloud backlog grew 55% quarter-on-quarter to $240 billion, driven by enterprise demand for AI products. Revenue from AI-powered Cloud offerings grew nearly 400% YoY, with over 120,000 enterprises using Gemini, including Salesforce, Shopify, Airbus and Honeywell.

Across consumer services, Alphabet now has more than 325 million paid subscriptions, with strong adoption of Google One and YouTube Premium. Gemini Enterprise, launched just four months ago, has already sold over eight million paid seats across 2,800 companies, processing more than five billion customer interactions in Q4 alone.

The Gemini app crossed 750 million monthly active users, with engagement rising sharply following the December launch of Gemini 3. Gemini 3 Pro adoption has been record-breaking, handling over 10 billion tokens per minute through direct API usage. Alphabet said efficiency gains reduced Gemini serving costs by 78% during 2025.

Alphabet’s AI infrastructure strategy continues to rely on a mix of in-house Tensor Processing Units (TPUs) and NVIDIA’s latest Vera Rubin GPUs to support large-scale training and inference workloads.

Looking ahead, Alphabet plans capital expenditure of $175–185 billion in 2026 to expand data centres, AI infrastructure and energy capacity.

Waymo also scaled rapidly, completing over 20 million fully autonomous trips and averaging 400,000 paid rides per week, while expanding services to new cities in the US as well as the UK and Japan.

Summing up the year, Pichai said, “2025 was a fantastic year for Alphabet. We’re really well positioned going into 2026.”