Google’s Profits Soar Thanks to Cloud & AI, But Legal Battles Loom

Google’s Earnings Report: A Mixed Bag of Success and Challenges

Alphabet, Google’s parent company, just announced a really impressive profit of $34.5 billion for the last quarter. A big reason for this success? Their cloud computing and artificial intelligence (AI) businesses are booming! Overall, Alphabet’s revenue climbed 12% to $90.2 billion compared to the same time last year. The cloud unit saw even more impressive growth, with revenue jumping 28% to $12.3 billion.

Alphabet CEO Sundar Pichai is clearly excited about these results, saying they show strong growth and momentum across the company. He pointed to their unique approach to AI as a key driver of this success. Pichai even touted their latest AI model, Gemini, calling it their most intelligent AI yet and a strong foundation for future innovation.

Investor Worries: Is Google Spending Too Much on AI?

But there are some clouds on the horizon for Google. Investors are wondering if the company is spending too much on AI, especially with the rise of lower-cost AI models from companies like China’s DeepSeek. Google and its rivals are pouring billions into data centers and research, and it’s not clear if this will pay off in the long run.

Antitrust Battles: Could Google Be Broken Up?

Adding to the pressure, Google is facing a major antitrust lawsuit from the US government. The government wants a federal judge to force Google to spin off its Chrome browser, arguing that AI could give the company even more power in online search. The Justice Department (DOJ) says that if Google isn’t stopped, it will control a huge chunk of the internet for the next decade, not just in search, but in new technologies like AI.

Google is fighting back, saying the government is overreaching and that breaking up the company would hurt American innovation. They also point out that Chrome is a popular browser used by millions of people, and that forcing them to spin it off would be a big inconvenience for users.

Another Legal Blow: Google Faces Ad Tech Scrutiny

To make matters worse, Google recently lost another antitrust case. A judge ruled that Google had used illegal tactics to dominate the online ad technology market. This could seriously impact Google’s revenue, as online advertising is a major source of income for the company.

Google says it’s appealing both rulings, but these legal battles could have a major impact on the company’s future. If Google is forced to make changes to its business practices, it could significantly reduce its influence in the tech world.