During Alphabet's recent Q1 2025 earnings call, Google CEO Sundar Pichai revealed that over 30% of Google's code is now AI-generated. This means developers are accepting AI suggestions for roughly one in every three code changes.
Pichai noted that AI-assisted programming is gaining significant traction across teams with the introduction of more powerful models and proactive workflows. Proactive workflows refer to AI systems capable of planning and executing multi-step tasks. He stated, "We're rolling out these deeper workflows across the company," specifically mentioning the customer service team as a leader in AI adoption.
Alphabet reported its Q1 2025 financial results on April 24th, showing a 12% year-over-year revenue increase to $90.2 billion, though down 6.5% from the previous quarter's $96.5 billion. Net income rose 46% to $34.5 billion, with diluted earnings per share up 49% to $2.81. Quarterly operating income reached $30.6 billion, up from $25.5 billion last year, and the operating margin expanded from 32% to 34%.
Google's core advertising business remained a key driver, with Google Search and other revenues growing to $50.7 billion, up from $46.2 billion last year. YouTube ad revenue increased to $8.9 billion, while Google's subscription, platform, and other revenues reached $10.4 billion. Furthermore, Google Cloud revenue saw significant growth, increasing 28% year-over-year to $12.3 billion, driven by strong demand for core cloud products, AI infrastructure, and generative AI solutions.
Google's recently launched Gemini 2.5 Pro model has been well-received by developers and consumers. Pichai called the model "best-in-class" across a wide range of benchmarks, achieving a significant first-place lead upon its initial launch in the chatbot space. He added that Gemini 2.5 Pro shows significant improvements in reasoning, coding, science, and math, opening new possibilities for developers and customers.
"Active users of AI Studio and the Gemini API have grown by over 200% since the beginning of the year," he said.
The Gemini model is now embedded in all 15 Google products and boasts over 500 million users. Android and Pixel products are leading the way, offering features like Gemini Live and AI-powered camera tools. Google Assistant will also be upgraded to Gemini, with support expanding to tablets, smartwatches, and cars later this year.
Furthermore, the Gemini model has been downloaded over 140 million times. Pichai also highlighted new frontiers in AI development, including the Gemini robotics model and AI co-scientists, a multi-agent system for scientific research. AlphaFold's breakthroughs in protein structure prediction are now being used by over 2.5 million researchers.
Pichai also emphasized progress in Google's core platforms. In Search, AI summaries serve over 1.5 billion users monthly, helping expand the types of questions Google can answer. Gemini Live screen sharing and camera tools are also launching on new Android devices like the Pixel 9a and Samsung S25.
Key Highlights:
🖥️ Over 30% of Google's code is AI-generated, with widespread developer adoption of AI suggestions.
📈 Google Cloud revenue saw significant growth, up 28% year-over-year to $12.3 billion.
🤖 The Gemini 2.5 Pro model excels across multiple domains, with active users growing by over 200%.
