Alphabet posts record $112.1 billion quarterly profit on AI investments
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Alphabet reported a record $112.1 billion net income for Q2 2026, a 298% year-over-year increase, driven largely by $99 billion in unrealized gains from AI investments. The windfall came from soaring valuations of Anthropic and SpaceX, in which Google holds stakes. The profit surpassed the annual revenue of 459 Fortune 500 companies.
The Investment Windfall
Alphabet booked $99 billion in unrealized and realized gains on equity securities in Q2, contributing $77.1 billion to net income after taxes. The gains stemmed from stakes in Anthropic and SpaceX, whose valuations surged. SpaceX went public in June at a $1.77 trillion valuation, up from $400 billion a year earlier, while Anthropic's private valuation rose from $350 billion to $965 billion.
Cloud Growth and AI Strategy
Google Cloud revenue grew 82% year-over-year, reaching $119.8 billion in total Q2 revenue, up 24%. CEO Sundar Pichai attributed the results to the company's 'full stack approach to AI.' Alphabet's $13.3 billion investment in Anthropic, with commitments up to $30 billion, includes a deal for Anthropic to purchase at least five gigawatts of computing capacity from Google Cloud.
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