Alphabet to report Q2 earnings after the bell

Core Insights - Alphabet is expected to report a 10.9% increase in revenue and 15% growth in earnings per share for the second quarter [1] - The company has faced challenges in stock performance compared to other major tech stocks, primarily due to concerns over AI chatbots impacting its search competitiveness [2] AI Developments - Google launched a new subscription tier, "Google AI Ultra," priced at $249.99 per month, providing access to advanced AI features [3] - The company announced the "AI Futures Fund" to invest in AI startups, offering financial support and resources [4] - Google has made significant talent acquisitions, including a $2.4 billion deal for Windsurf CEO Varun Mohan and other AI researchers [6] Cloud and Partnerships - OpenAI has added Google as a supplier for its ChatGPT service, utilizing Google's cloud infrastructure, which is a positive development for Google's cloud unit [5] - Google Cloud revenue for the quarter was reported at $13.11 billion [9] Operational Updates - Alphabet has implemented workforce reductions and buyouts across various divisions [7] - Waymo, Alphabet's self-driving car unit, achieved 100 million fully autonomous miles driven and is expanding into new markets, including plans for manual driving in New York [7][8] Financial Performance - Alphabet's total revenue for the quarter was $93.94 billion, with earnings per share at $2.18 [9] - YouTube advertising revenue was reported at $9.56 billion, and traffic acquisition costs were $14.18 billion [9] Challenges - The company experienced significant global outages in its cloud services, affecting major internet services [10]