Google's moneymaking machine still pumping out massive profits despite multiple threats

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Google is still thriving while the company navigates through a pivotal shift to artificial intelligence and battles regulators trying to topple its internet empire

SAN FRANCISCO — Google is still thriving while the company navigates through a pivotal shift to artificial intelligence and battles regulators trying to topple its internet empire.

The latest evidence of Google’s prosperity emerged Tuesday with the release of its corporate parent Alphabet Inc.’s results for the July-September period. Both Alphabet’s profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google’s ubiquitous search engine.

Alphabet earned $26.3 billion, or $2.12 per share during the most recent quarter, a 34% increase from a year ago. Revenue rose 15% from the same time last year to $88.27 billion.

“Our commitment to innovation as well as the long-term focus and investment in AI are paying off,” Alphabet CEO Sundar Pichai said during a call discussing the results.

The profits would have been even higher if Google wasn’t pouring so much money into building up its AI arsenal in a technological arms race that includes other industry heavyweights Microsoft, Amazon, Apple, Facebook parent Meta Platforms and rising star OpenAI. The AI investments are the primary reason Google’s capital expenditures in the past quarter soared 62% from the same time last year to $13.1 billion.

The AI spending will likely stay at roughly the same level during the current October-December period, and the rise even higher next year, according to Anat Ashkenazi, Alphabet's chief financial officer. But Ashkenazi also emphasized the Mountain View, California, company will act on cost-cutting