Alphabet reported a consolidated revenue of $90.2 billion for the first quarter of 2025, marking a 14% increase year-over-year, with Google Cloud contributing $12.3 billion in revenue, up 28% from the previous year.

The company's net income rose by 46% to $34.5 billion, with diluted earnings per share increasing by 49% to $2.81, reflecting strong financial performance.

This announcement was made during Alphabet's Q1 earnings call, highlighting the growing impact of generative AI within the company.

Google is phasing out Google Assistant on mobile devices in favor of Gemini, with plans to extend this transition to tablets, cars, headphones, and watches later in 2025.

Developers are encouraged to embrace AI tools, focus on high-value tasks, and view AI as a collaborator rather than a competitor.

Experts emphasize that AI is not a substitute for human developers but rather a tool that enhances their capabilities, allowing them to oversee AI-generated code and address complex problems.

During the earnings call, CEO Sundar Pichai announced that over 30% of new code at Google is now generated by artificial intelligence, an increase from 25% in October 2024.

Operating income for Q1 2025 reached $30.6 billion, up from $25.5 billion in the same quarter the previous year.

Pichai emphasized the strong momentum in AI-assisted coding, supported by advanced models and the introduction of agentic workflows, which enhance productivity and streamline workflows.

Active users of Google AI Studio and its Gemini API have more than tripled since the start of 2025, reflecting a growing interest in Google's AI offerings.

He highlighted the successful release of Gemini 2.5 Pro, which has been well-received for its improvements in coding, reasoning, and scientific applications.

Alphabet plans to maintain its $75 billion capital expenditures for 2025 to support its AI development strategy, driven by rising customer demand for cloud and AI services.