AI at the Core: Google’s Gemini Surges to 450 Million Users as AI Powers Growth Across Business
Google is witnessing a remarkable transformation as artificial intelligence becomes the backbone of its business operations. The tech giant’s Q2 2025 earnings paint a clear picture of AI’s expanding influence across platforms like Search, YouTube, Cloud, and its Gemini assistant. With a reported revenue of $96.4 billion—marking a 14% year-over-year increase—Alphabet CEO Sundar Pichai attributes much of this growth to the company’s deepening investments in AI technologies.
“AI is positively impacting every part of the business,” Pichai stated in the company’s press release. The numbers back this up. Google's AI-driven services like AI Overviews and AI Mode are seeing widespread adoption globally. AI Overviews, which delivers AI-generated summaries and enhanced search insights, now serves over 2 billion monthly users in more than 200 countries and 40 languages. Meanwhile, AI Mode has crossed the 100 million monthly active user mark, particularly in the U.S. and India.
At the heart of this AI revolution is the Gemini app—Google’s next-generation AI assistant. Monthly active users of Gemini have surged to over 450 million, with daily usage requests rising by more than 50% from the previous quarter, showing strong momentum in user engagement and utility.
To meet the growing demands of its AI infrastructure, Google has significantly increased its capital expenditure plans for 2025. The company now projects a total of $85 billion in infrastructure investments this year—$10 billion higher than previously forecast. Alphabet CFO Anat Ashkenazi explained, “Our updated outlook reflects additional investment in servers and an acceleration in the pace of data centre construction.” These enhancements aim to support a global surge in AI adoption and growing demand for cloud-based AI tools.
Google continues to double down on its full-stack AI strategy—encompassing in-house model development and integration into consumer and enterprise products like Gemini, Workspace, and YouTube. This quarter, the rollout of Gemini 2.5 models powered tools like Veo 3, a hit video generation platform, and Flash-Lite, a lightweight AI reasoning engine. Since May, users have generated more than 70 million videos using Veo 3.
YouTube has also been a major AI beneficiary. Its Shorts feature now garners over 200 billion daily views. Notably, in several markets, Shorts is now more lucrative in revenue per watch hour than traditional video formats. Subscription services have also seen significant upticks.
On the enterprise side, Gemini in Google Cloud continues to gain traction. Over 85,000 businesses—among them BBVA, Capgemini, and Target—are leveraging AI agents to automate operations and improve efficiency. Cloud usage for AI services has grown 35 times year-over-year.
Despite ongoing regulatory scrutiny, including the upcoming ruling in the DOJ antitrust case, Pichai remains upbeat. “This is an incredibly exciting moment for Search,” he said, noting AI has fueled a surge in both general and commercial queries—especially among younger users, a key demographic for future growth.
With AI now embedded across the company's ecosystem, Google is not only reshaping its business but also influencing how millions engage with technology every day.