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Artificial intelligence (AI) has been woven into Alphabet’s (GOOG) (GOOGL) DNA for years. It dates back to 2017, when Alphabet began weaving AI into everyday products like Gmail, improving how emails were sorted, filtered, and answered. That early bet reinforced its dominance in Search, which still controls about 90.8% of the market. The payoff has been substantial—revenue climbed from $182 billion in 2020 to a projected $400 billion in fiscal 2025, capped by its first $100 billion in Q3. CEO Sundar Pichai credits a full-stack AI strategy now powering stronger engagement across Search through AI Overviews and AI Mode.
Beyond the headlines, the market is beginning to distinguish between temporary AI enthusiasm and companies positioned for durable growth. Alphabet sits firmly in the latter camp. Its unmatched scale in Search, paired with a rapidly expanding Cloud business, allows it to translate innovation into daily usage and recurring revenue. What once appeared experimental is now showing up in higher engagement, stronger demand, and rising estimates.
