AI boom boosts cloud business growth, Google's revenue soars

Google parent company Alphabet (GOOG. O) reported third-quarter results, with revenue rising 16% year-on-year to a record $102.30 billion, beating analysts' expectations. Thanks to the growth of its digital advertising and cloud computing businesses, the company has provided ample funds for large-scale artificial intelligence investments. Net profit was about $35 billion, up 33% year-on-year. The company's shares rose about 7% at one point in after-hours trading. Like other tech giants, Google is investing tens of billions of dollars in artificial intelligence research and development. The company raised its capital expenditure forecast for this year to $91 billion to $93 billion, a significant increase from $52.50 billion in 2024. Most of that money will be used to build data centers to develop and run AI models. Google's cloud computing division has benefited significantly from the AI race, generating $15.20 billion in revenue this quarter, up 34% year over year.