According to CEO Sundar Pichai's remarks on the earnings call, Alphabet is at a half-trillion-dollar annual revenue run rate. Google Cloud grew 103%, driven mainly by AI infrastructure and solutions, and the company is working to bring more capacity online to meet demand, including demand for TPU systems. Google's first-party model APIs are processing nearly 32 billion tokens per minute, 40% more than last quarter, and the Gemini app has reached one billion users.
According to TechCrunch, Search revenue grew 12% year over year, after 17% in the second quarter and 19% in the first. Chief business officer Philipp Schindler announced the expansion of ads in AI Mode to international markets and multi-turn ads in AI Mode in the US. He said click-through rates for sponsored product listings in AI Mode are comparable to organic listings. Pichai said query growth is at its highest rate in five years, without giving the figure.
Pichai repeated the same-day announcement of Gemini 4 Carbon, which is going first to a group of cyber defenders, and said the company expects acceleration over the next 12 months because of recursive self-improvement (RSI). He said agents will extend beyond Search and the Gemini app to Chrome, Android and Workspace. Waymo has passed 300 million autonomous miles and operates in 15 US cities.
