Sundar Pichai Hails ‘Tremendous Quarter’ After $400 Billion Milestone For Alphabet, Elon Musk Reacts

Alphabet, the parent company of Google, crossed the historic $400 billion annual revenue mark in 2025 for the first time, underlining its growing influence in artificial intelligence, cloud computing, and digital services. CEO Sundar Pichai described the final quarter as “tremendous,” crediting the company’s expanding AI ecosystem for driving strong business momentum.

The company reported robust growth across its core businesses. Search revenues rose 17 per cent year-on-year, driven by rising usage and AI-powered enhancements. Pichai noted that artificial intelligence has created an “expansionary moment” for Google Search, boosting engagement and advertiser interest.

Google Cloud emerged as one of the strongest performers, recording a 48 per cent jump in revenue and reaching an annual run rate of over $70 billion. Its order backlog surged 55 per cent to $240 billion, reflecting rising demand for enterprise AI solutions and cloud infrastructure.

Revenues from products built on generative AI models grew nearly 400 per cent year-on-year in the fourth quarter, highlighting the commercial success of Alphabet’s AI strategy. The launch of Gemini 3 played a key role, with serving costs reduced by 78 per cent through efficiency improvements.

Gemini breaches 750 million mark

The Gemini app now has more than 750 million monthly active users, with user engagement rising sharply since the December launch of Gemini 3. This surge reflects the growing adoption of AI-powered tools across consumers and enterprises.

YouTube also delivered strong results, with combined advertising and subscription revenues crossing $60 billion in 2025. Google Services revenues rose 14 per cent, supported by growth in search, subscriptions, devices, and advertising platforms.

In the fourth quarter alone, Alphabet’s consolidated revenues climbed 18 per cent to $113.8 billion, driven by accelerating growth in both Google Services and Google Cloud. The company highlighted strong momentum across its global operations.

Pichai thanks employees, Musk reacts too

Celebrating the milestone on social media, Sundar Pichai thanked employees and partners for their contribution. His post drew praise from global business leaders, including Elon Musk, who congratulated Google on achieving the landmark revenue figure. Musk responded to the Google CEO saying, “Well done!”

Looking ahead, Alphabet is aggressively expanding its infrastructure. The company has projected capital expenditure of $175 billion to $185 billion in 2026, aimed at strengthening data centres and AI computing capacity to sustain long-term growth.

With AI, cloud services, and digital platforms driving performance, Alphabet’s record-breaking year signals a new phase of technological leadership and financial strength.

(With inputs from ANI)