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Alphabet’s AI Monetization Accelerates as Gemini Usage Soars

Fresh ad formats, enterprise access, plus chip deals point to durable AI revenue.

Overview

  • Gemini now reaches about 750 million monthly users, up from roughly 450 million at the start of 2025, signaling fast adoption across Google’s products.
  • Google is inserting ads into about a quarter of Gemini’s AI answers and is using a new Direct Offers system that surfaces personalized deals and loyalty perks for shoppers ready to buy.
  • Google Cloud struck a partnership with Thoma Bravo that gives the private equity firm’s software companies access to Gemini models and the Gemini Enterprise platform, with co-sell support through Cloud Marketplace.
  • TD Cowen lifted its Alphabet price target to $375 and kept a Buy rating after checks pointed to stronger search click volumes and steady momentum in Google Cloud.
  • Google’s TPU strategy gained definition with a Broadcom supply deal running through 2031 and outside demand, including Anthropic’s plan to tap 3.5 gigawatts of TPU capacity starting in 2027.