Google annual revenue crosses $400 billion for the first time: Heres how the company achieved this major milestone

Google has achieved a big milestone in terms of finances because its income had topped 400 billion dollars in a year. The expansion was fueled by a good performance in Gemini AI, cloud services, Search, and YouTube. These were presented in the most recent Google earnings report by Alphabet CEO Sundar Pichai as artificial intelligence has become a primary focus point in the overall business of the company.

Gemini AI Importance in Building User Base

Gemini AI is still experiencing high usage in both consumer and enterprise usage. As Google claims, more than 750 million monthly active users of the Gemini app are now available throughout the world. This has been made possible by regular updates of the models and expansion in the platforms of Google.

Pichai also affirmed that Gemini Enterprise had already sold more than 8 million paid seats. The enterprise version has just been introduced after four months, and it indicates a great desire among businesses aiming to apply AI tools in their business processes and productivity.

Gemini 3 Boosts Engagement

Since the release of Gemini 3 in December, user interaction has gone up significantly. Google claimed that people spend more time on the app, and general usage has increased across the regions. Gemini 3 Pro is processing close to three times the daily tokens than the previous Gemini 2.5 Pro.

Google is also using new tools that are driven by its AI models. Google Anti Gravity is one of the best examples of this reference, as it is a developmental platform, enabling AI agents to plan and execute complex software tasks. The platform has more than 1.5 million weekly users, only two months after the launch.

Google Cloud and YouTube

Google Cloud has registered one of the best quarters. The cloud revenue increased by 48 percent per annum and currently operates at an annual rate of more than 70 billion dollars. The cloud backlog of the company increased to $240 billion, with the major upswing in the demand of AI-powered products.

YouTube also performed well. Advertising and subscriptions were more than $60 billion a year. Search revenue also continued to widen increasing by 17 percent in the quarter.

Collaboration with Reliance Jio

Google has collaborated with Reliance Jio to make Gemini AI reach more people in India. This collaboration will offer more than 500 million consumers 18 months of free Gemini product usage as well as 2TB of cloud storage. Additionally, Reliance customers will also have access to the Gemini Enterprise and the AI hardware of Google.

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Google intends on investing more in the AI infrastructure. The company anticipates capital spending of between 175billion and $185billion in 2026. Such investments will center around increasing AI demand and helping it to grow its products and services long term.