Alphabet Inc. exceeded Q1 revenue forecasts, driven by cloud computing growth and AI investments. Despite trailing in the cloud market, Google leverages AI expertise to close the gap. However, challenges arise as competitors like Meta increase AI spending. While AI poses questions for Google’s ad-driven business model, its cloud division thrives, reporting $9.6 billion in sales. YouTube revenue also surged, benefiting from sports investments and ad improvements. Alphabet’s Other Bets division, including Waymo and Verily, reported revenue of $495 million but incurred a $1 billion loss. Layoffs aim to streamline resources for AI investment, reflecting Google’s strategic shift.