Google Has More Money, Users, and Profits Than Ever. Despite This, It’s Shrouded in Fear

Google just announced financial results that would be cause for celebration at any other time. Revenue is up 12%, profits are up 28%, and its cloud division is up 30%. But Wall Street responded with a 7% drop in early trading.

Google has never had more to celebrate, but it also has more to lose.

Between the lines. The $75 billion investment in AI development through 2025—47% above expectations—looks less like a show of strength and more like a defensive reaction.

Google is spending more than ever to protect its position, while competitors like DeepSeek have shown that innovation in AI is possible with far less.

The numbers. The figures are staggering:

• Revenue: $96.47 billion (up 12%).
• Net income: $26.54 billion (up 28%).
• Google Cloud: $11.96 billion (up 30%).
• AI investment: $75 billion expected by 2025.

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Background. For the first time in its history, Google is on the defensive. The threat to its search business from generative AI is real, and the company must respond to innovation from smaller competitors—a scenario that seemed unthinkable two years ago.

The giant that reshaped the internet is now chasing others, with companies like DeepSeek proving competitive models can emerge with a fraction of the investment.

Tipping point. Google’s shift on AI principles—removing restrictions on military use and mass surveillance—reflects this change. The company argues that “democracies must lead in AI,” a veiled concern over Chinese competition.

The timing is also notable: China just announced an antitrust investigation into Google, and the company recently lost a similar case in the U.S.

What’s next? The paradox is clear: the bigger Google gets, the more vulnerable it seems. The 7% stock drop following strong earnings confirms that.

Investors don’t see the investment plan as a show of strength but as proof that even Google fears for its future.

Image | Mitchell Luo (Unsplash)

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