AI is making Google and Meta even stronger and richer

Steven

AI is making Google and Meta even stronger and richer

Summary

Generative AI features are boosting revenue and engagement at both Alphabet (Google) and Meta, according to their Q3 2025 results. Google says its AI-driven search prose is lifting total query growth and ad revenue, while Google Cloud is seeing faster customer growth thanks to AI. Alphabet reported a record quarter with total revenue of $102.34 billion.

Meta credits AI-powered recommendations and AI ranking for stronger ad performance; the company says its end-to-end AI ad tools have an annual run-rate above $60 billion. Meta posted $51.25 billion in Q3 revenue.

Both firms are dramatically increasing capital expenditure to build and power AI infrastructure — spending that executives argue will be profitably absorbed by existing products and new AI-driven services.

Key Points

  • Alphabet Q3 revenue hit $102.34 billion — its first $100 billion quarter — up 16% year-on-year.
  • Google advertising revenue rose 12% to $74.2 billion; Google Cloud revenue climbed 33% to $15.15 billion.
  • Meta Q3 revenue was $51.25 billion, up 26% year-on-year; AI ranking and recommendations are driving more user time and ad performance.
  • Meta reports its AI ad toolset has passed a $60 billion annual run-rate.
  • Both companies are scaling capex heavily to add servers, data centres and networking: Alphabet expects FY2025 capex of $91–93 billion; Meta raised its 2025 floor to $70 billion and expects even larger 2026 spending.
  • Executives argue extra compute will accelerate core businesses and enable ambitious AI products (Meta referring to a personal assistant / “superintelligence”).
  • Market reaction: Alphabet shares jumped after-hours; Meta shares fell after a large one-off tax charge hit net income.

Why should I read this?

Short version: if you care about who actually wins the AI boom, this is it — the old giants are using AI to pull further ahead, not get elbowed out. The numbers show AI isn’t just a feature; it’s driving ads, cloud deals and massive infrastructure bets. Read it if you want a quick snapshot of why Google and Meta are still the ones calling the shots (and spending like it).

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/30/meta_alphabet_q3_2025/