Alphabet Pitches AI as Core Growth Engine in Post-Earnings Call
The Google parent points to rising Gemini usage and enterprise adoption after a year of investor doubt.
Topics
News
- Dubai Chamber of Digital Economy Partners With Canva to Set Up Regional HQ
- Apple Puts Virtual Health Coach On Hold Amid Tough Competition
- Alphabet Remains Cautious On Apple Deal, Dodges Investor Question
- HBKU and QRDI Enter Partnership to Advance National Tech Capabilities
- UAE Families Expect AI to Redefine How They Live, Bond, and Raise Children
- Alphabet Pitches AI as Core Growth Engine in Post-Earnings Call
Alphabet is taking a more confident stance in its competition with OpenAI, marking a clear change from a year ago when investors worried that the Google parent was falling behind in generative AI. That shift was on display during Alphabet’s latest post-earnings call, where executives argued that heavy AI spending is now paying off across the business.
The call was the company’s first since the release of its Gemini 3 model and struck a far more assured tone than previous quarters. In early 2025, Alphabet faced market pressure over concerns that Google was losing ground to rivals in AI. Now, executives say those concerns are easing as AI tools become more deeply built into Google’s products and services.
A key part of the message focused on spending. Alphabet said it is considering a sharp increase in capital expenditure in 2026, potentially raising spending to between $175 billion and $185 billion. The company said the money would be used to expand AI computing capacity. Unlike earlier updates, which mainly pointed to AI gains in cloud computing, Alphabet now says AI is driving growth across both its consumer and business offerings.
“Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board,” said Sundar Pichai, Alphabet’s chief executive.
User growth was cited as one sign of progress. Pichai said the Google Gemini app reached more than 750 million monthly active users by the end of the December quarter, up from 650 million in the previous period. That number is still below ChatGPT, which OpenAI CEO Sam Altman said in October had passed 800 million weekly active users, but Alphabet said engagement has risen since the launch of Gemini 3.
The model has been added to Google Search and to the company’s enterprise Gemini product. Pichai said the enterprise version now has 8 million paid users, showing stronger demand from businesses.
Alphabet’s renewed confidence comes as investors take a harder look at other tech giants. Shares of Microsoft took a toll last week after it signaled lower spending, with some investors concerned about its close ties to OpenAI. Meanwhile, Alphabet has climbed among the top U.S. tech firms, now rivaling Nvidia and Apple in market value above $4 trillion.
