Alphabet recorded a 14 per cent year-on-year rise in revenue in Q2, driven in large part by strong results across search and Google Cloud.

The company reported revenue of $84.7 billion, with net income up from $18.3 billion to $23.6 billion.

Google Cloud posted revenue of $10.3 billion compared with $8 billion in Q2 2023, due in part to strong demand for AI infrastructure. 

Outgoing Alphabet and Google CFO Ruth Porat stated on its earnings call it is the first time Google Cloud exceeded $10 billion in quarterly revenue and $1 billion in operating profit.

Alphabet and Google CEO Sundar Pichai (pictured) said in the year-to-date “our AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenues and are being used by more than 2 million developers”.

Pichai said the company is “uniquely well-positioned for the AI opportunity ahead”.

Chief business officer Philipp Schindler noted “people are finding ads either above or below AI Overviews helpful”.

Google plans to start testing new advertising formats in AI Overviews as part of a plan to expand it from the US to billions of users across various countries by the year-end.

Search advertising revenue rose from $42.6 billion to $48.5 billion.

YouTube reported $8.6 billion in revenue compared with $7.6 billion.

Other bets brought in $365 million in revenue while posting an operating loss of $1.13 billion.

After close to nine years as CFO, it was 56th and last earnings call for Porat as she transitions to a new role as president and chief investment officer.

Anat Ashkenaz takes over as CFO on 31 July, joining from pharmaceutical player Eli Lilly.