Alphabet on Wednesday cited massive demand for its cloud computing services as it hiked its capital spending plans for the year to about $85 billion and predicted a further increase next year.

Google’s accelerating shift into artificial intelligence helped propel its corporate parent to another quarter of solid growth while a crackdown on its internet empire looms in the background

Wednesday’s report follows Alphabet’s better-than-expected Q1 release earlier this year, in which the company reported year-over-year growth of 12% and 49% for its top and bottom lines, respectively, after Google’s search unit generated more in sales than analysts projected.

Alphabet beat Q2 expectations with strong ad and cloud revenue, but stayed silent on crypto. Despite backing Web3 infrastructure, Google still holds no Bitcoin or digital assets.

Alphabet beat Wall Street estimates for its second quarter on Wednesday, and cited massive demand for its cloud computing services as it hiked its capital spending plans for the year to about $85 billion.

Google beat earnings expectations across the board — but a surprise $10 billion increase in capex spending is raising fresh concerns about AI costs.

Google is all-in on AI, and based on the company’s latest quarterly earnings, AI has been good for its bottom line. In a press release for Alphabet’s Q2 2025 earnings, CEO Sundar Pichai says that “AI is positively impacting every part of the business” and that features like AI Overviews and AI Mode are “performing well.”

The search giant is spending tens of billions of dollars on infusing its products with artificial intelligence capabilities.

American tennis star John Isner began a grueling Wimbledon match against Frenchman Nicolas Mahut that would become the longest in the sports