Pichai flags strong AI-led growth as Alphabet revenues top $400 billion

Alphabet and Google CEO Sundar Pichai on Wednesday said the company’s annual revenues exceeded $400 billion for the first time, while the Gemini AI app has crossed 750 million monthly active users.

Speaking during the company’s quarterly earnings call, Pichai said Alphabet has sold more than 8 million paid seats of Gemini Enterprise, which was launched just four months ago.

He added that the company is seeing significantly higher engagement per user, particularly since the launch of Gemini 3 in December. “Overall, our AI investments and infrastructure are driving revenue and growth across the board to meet customer demand. To capitalise on the growing opportunities ahead, our 2026 capital expenditure is anticipated to be in the range of $175 to $185 billion,” Pichai said.

Pichai also highlighted Alphabet’s partnership with Reliance Jio to offer over 500 million consumers an 18-month free trial of the Gemini suite of products along with two terabytes of cloud storage. Reliance Enterprise customers will also gain access to Google Cloud Gemini Enterprise and TPUs, bringing Google AI to employees and workflows across organisations.

In the December quarter, Search continued to accelerate, with revenues growing 17 per cent, while YouTube’s annual revenues surpassed $60 billion from advertising and subscriptions.

“Cloud significantly accelerated, with revenues growing 48 per cent and now running at an annual rate of over $70 billion. Backlog grew 55 per cent quarter-on-quarter to $240 billion, representing a broad base of customers driven by demand for AI products. We now have over 325 million paid subscriptions across consumer services, with strong adoption of Google One and YouTube Premium,” Pichai said.

He further noted that since its launch, Gemini 3 Pro has consistently processed three times as many daily tokens on average as Gemini 2.5 Pro.

“Our latest model powers Google Anti Gravity, our new development platform where agents can autonomously plan and execute complex software tasks. It has already attracted more than 1.5 million weekly users just over two months after launch,” he added.