Google's second quarter earnings report showed better than expected performance in advertising and cloud sectors. Adjusted earnings per share reached $2.31 on revenue excluding traffic acquisition costs of $81.2 billion. Search and YouTube ad revenues surpassed expectations, contributing to overall advertising revenue of $71.3 billion. Cloud revenue also exceeded forecasts at $13.6 billion. The company plans to increase capital expenditures to $85 billion, primarily for AI enhancements, which are significantly impacting various business segments.
"AI is positively impacting every part of the business, driving strong momentum," CEO Sundar Pichai said in a statement.
"Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well. We continue to see strong performance in YouTube as well as subscriptions offerings."
Google Cloud Platform revenue hit $13.6 billion, exceeding analysts' expectations of $13.1 billion.
Google is expected to spend $75 billion this year expanding its AI capabilities, which include massive data centers running on its home-grown chips and Nvidia's processors.
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