Google’s AI strategy is beginning to show results at massive scale.
Alphabet said its Gemini AI app now has 950 million monthly active users, up from 750 million after the fourth quarter of 2025, as the company reported another quarter of strong revenue growth fueled by AI demand.
The announcement came alongside Alphabet’s second-quarter earnings, which showed revenue of $119.8 billion, up 24% year over year, while Google Cloud revenue jumped 82% to $24.8 billion as businesses increased spending on AI services and infrastructure.
On the earnings call, CEO Sundar Pichai also said Gemini’s daily active users have tripled over the past year, underscoring continued adoption of Google’s flagship AI assistant.
AI investments continue to pay off
Alphabet credited much of its cloud momentum to enterprise demand for AI products and infrastructure. Cloud operating income more than tripled to $8.8 billion, while the company’s backlog of contracted cloud business grew to $514 billion, according to Alphabet.
“Our AI investments are redefining what’s possible across every part of our business,” Pichai said during the earnings call. “We have exciting momentum across the board.”
The company also said Gemini now processes 22 billion API tokens per minute, reflecting growing use by developers and enterprise customers. The figure reflects increasing developer and enterprise adoption of Gemini through Google’s AI platform.
Google has continued to expand its AI lineup this week with new, lower-cost Gemini models, including Gemini 3.6 Flash, as it looks to make AI services faster and more affordable.
Spending remains a key question
Despite the strong results, investors remain focused on Alphabet’s rising AI spending. The company has already spent $44.9 billion on capital expenditures this year and raised its full-year forecast to between $195 billion and $205 billion, largely to fund data centers, chips, and AI infrastructure.
Finance chief Anat Ashkenazi said demand continues to outpace available capacity. “We’re still in a supply-constrained environment,” Ashkenazi told analysts on CNBC. “We are seeing very strong demand both from external cloud customers as well as across the business.”
Alphabet shares fell in after-hours trading following the earnings release, even as revenue exceeded Wall Street expectations.
Gemini’s latest user numbers put Google closer to OpenAI’s ChatGPT, which outside estimates place at roughly 1 billion monthly active users. At the same time, Google faces growing competition from rivals offering lower-cost AI models, including Chinese open-weight alternatives, while the company continues testing its delayed Gemini 3.5 Pro model and has already begun early work on Gemini 4.
The bigger picture
Gemini’s rapid growth shows Google is successfully turning its enormous ecosystem into an AI distribution engine. Integration across Android, Search, and Google services gives the company a powerful advantage in attracting users, while enterprise adoption is helping translate AI investments into cloud revenue.
However, the long-term test is no longer user growth alone. Alphabet still does not disclose Gemini’s standalone revenue, leaving investors to judge whether its multibillion-dollar AI spending will generate returns beyond boosting Cloud and strengthening Google’s broader product ecosystem.
Gemini’s user growth demonstrates Google’s ability to distribute AI through products people already use every day. The next challenge is proving that hundreds of millions of users—and billions of dollars in AI infrastructure spending—can translate into durable revenue growth and long-term returns for investors.
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