Alphabet(US:GOOG) Benzinga·2025-10-30 17:43Core Insights - Alphabet Inc. is undergoing a strategic shift in its search capabilities, with AI-driven search expected to be as transformative as the introduction of "universal search" nearly two decades ago [1][3][7] - The integration of AI, particularly through the Gemini platform, is seen as the next growth engine for the company, aiming to create a more personal and proactive user experience [5][6] Financial Performance - Alphabet reported a record quarterly revenue of $102.3 billion, reflecting a 16% year-over-year growth, largely driven by AI in both advertising and cloud services [3] - The performance of AI-driven ad formats is reportedly maintaining the same effectiveness as traditional search ads, allowing for continued investment in AI technologies [4] User Adoption and Engagement - AI Overviews have reached over 2 billion users, while the new AI Mode, which offers conversational search, has 75 million daily users in the U.S., indicating mainstream adoption [4] - The company is focused on creating a unified user experience that integrates search, Gemini, and other services, enhancing user engagement across platforms [2][5] Future Outlook - The evolution towards "AI search" is anticipated to define the next decade, with Google positioning itself as a leader in building the necessary infrastructure [7] - Google Cloud's backlog is at record highs, and the company is rapidly signing large AI infrastructure deals, indicating strong future growth potential [6]