Alphabet
Investor Presentation
AI is the most profound platform shift of our lifetimes. It's lighting up every part of our business, driving an expansionary moment in Search, turbocharging Cloud, and much more.
At the same time, we are experiencing strong demand for our AI solutions and services from enterprises and consumers, at levels that are meaningfully exceeding our available supply. This is a clear indicator of Alphabet's unique opportunity. By scaling our investments, we intend to secure the foundational infrastructure necessary for the significant growth opportunity ahead.
We're innovating at scale with incredible velocity.
Since launching Gemini 3 last November, our momentum has accelerated.
We've rolled out increasingly capable generative media models; shipped features across Chrome and the Gemini app, launched Antigravity and our first model
in our Gemini 3.5 series.
Recently at our I/O annual developer conference, we showcased new advances across models, coding, and agents. This progress rejects our deep focus on delivering tangible value to people in the products they use every day.
Supporting all of this at scale for our users, while also serving enterprises and
developers around the world, requires massive compute investments.
In 2022, we spent approximately $31 billion in CapEx. This year, we expect that number to be 6 times larger than 2022 and double last year's at $180-190 billion. And next year, we expect it to significantly increase compared to 2026.
The overwhelming majority of this spend will be in technical infrastructure.
We plan to fund our investments in a balanced way, including: strong operating cash €ow, debt issuances, and today's equity oPering.
Maintaining a strong balance sheet while accelerating our investments is a strategic advantage, and helps us meet surging demand for our AI products and services.
I want to highlight six key areas where our innovation and leadership are positioning
us well to capture the opportunity ahead and drive shareholder value:
First, our accelerating business momentum
Second, our differentiated full stack approach to AI
Third, our unmatched global product footprint
Fourth, Google Cloud leadership
Fifth, our visionary long-term Bets: and
Sixth, strong financial discipline.
Accelerating BusinessMomentum
Alphabet
We are reaching significant milestones across every area of the business:
From 2020 to 2025, our annual revenue more than doubled to over $400 billion. Over the last 12 months alone, we added $63 billion dollars to our top line.
This growth continued in O1 of this year - revenue climbed 22% year-over-year to
$110 billion. Finally, our operating income grew 30% year-over-year to $40 billion.
This momentum spans our entire portfolio. I'll call out five areas in particular:
In Search, revenue grew 19O/ year-over-year last quarter. AI Overviews and AI Mode are driving user engagement and Al-powered ad tools are driving beber ROI for advertisers.
In Cloud, Q1 year-over-year revenue growth was 63Ooand backlog nearly doubled
quarter-over-quarter to more than $460 billion.
YouTube's total annual revenue for 2025 surpassed $60 billion across ads and subscriptions.
And Waymo has entered a new growth era, valued at $126 billion in February, with plans to expand to 20 additional cities this year.
Subscriptions recently reached 350 million, driven by YouTube and GoogleOne.
Our AI plans are performing exceptionally well. Users are realizing the value of our most capable AI models, expanded storage, and productivity tools. We had the strongest quarter ever for our consumer AI plans.
We believe we are well positioned to drive profitable revenue growth. We're reaching new Al-driven market opportunities, spanning ads and subscriptions, model development, cloud, infrastructure, and services in the physical world.
Difierentiated, Full Stack Approach to AI
Alphabet
This momentum is a direct result of our decade-long full-stack approach to AI, our unique diPerentiator. The foundational layer of the stack is our unrivaled AI infrastructure.
This includes 10 million kilometers of terrestrial and subsea fiber connecting over 30 data centers and over 40 Cloud regions around the world.
Our recent acquisition of Intersect will help us come to market even faster.
We pride ourselves on building efficiently and sustainably, and supporting local communities through job creation and workforce development programs.
We offer a wide variety of compute options - from our own TPUs and Axion CPUs to the latest NVIDIA GPUs, which are a core part of our AI accelerator portfolio.
It's been ten years since we introduced our first commercial TPU. Today, they power Gemini model training and serving at scale across our APIs and biggest products like Search.
Our eighth-generation TPUs, 8i and 8t, oPer a new dual-chip design specifically for the massive training and inference needs of the agentic era.
We continue to drive tremendous eff1ciency gains - for example in 2025, we reduced Gemini serving costs by 78%.
Security is the critical second layer of our full stack, built directly into our foundational code. With the rapid adoption of AI, protecting data and privacy grows more complex every day.
Our secure-by-default architecture automatically blocks 10 million spam emails every
minute, and protects billions of users and customers across our broad portfolio. We are proud to keep more people safe online than anyone else in the world.
For our enterprise customers, we launched Google AI Threat defense. This is a new security platform that combines the strengths of Gemini and other frontier models, along with Wiz, CodeMender, and Mandiant, to stop Al-powered threats before they impact our customers.
The next layer is our world-class research teams, led by Google DeepMind. These teams are the engine of our entire AI stack, from inventing the Transformer architecture to developing our highly capable Gemini models.
Research teams are also pioneering advances in science, medicine, and climate. That includes WeatherNext and AlphaFold, which was awarded the Nobel Prize in Chemistry.