Alphabet Inc. (GOOG): Business Model Canvas [Dec-2025 Updated]

As a seasoned analyst, you see the real story behind Alphabet Inc.'s numbers, and right now, it's a high-stakes pivot: the core advertising machine, which generated $56.6 billion from Search ads in Q3 2025, is funding an AI-first future. We need to map exactly how that cash flow supports the massive R&D and the $155 billion cloud backlog, which is showing 34% growth. Below, I've laid out the entire Business Model Canvas, simplifying the complexity of their key resources-like Gemini and those custom TPUs-and their value proposition split between billions of free users and high-value enterprise clients, so you can see the precise structure underpinning their $91 billion-plus capital expenditures this year. Dive in to see the mechanics of this transition.

Alphabet Inc. (GOOG) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Alphabet Inc.'s ecosystem, the external relationships that fuel its core services and future bets. These partnerships aren't just nice-to-haves; they are critical dependencies for everything from hardware supply to content distribution and advertising reach.

Nvidia for next-generation GPU and AI hardware supply

The relationship with Nvidia remains foundational for Alphabet's AI infrastructure, even as the company pushes its own Tensor Processing Units (TPUs). Alphabet's Google Cloud is an early adopter of Nvidia's latest hardware, specifically the GB300 NVL72 GPU, which delivers a reported 1.5x AI performance boost over its predecessor. This collaboration is key to powering large-scale model training and inference. Furthermore, Alphabet's open models, like Gemma, are being optimized for the NVIDIA GPU architecture, ensuring broad compatibility across the AI landscape. This dual-sourcing strategy hedges against single-vendor risk while accessing best-in-class performance for specific workloads.

Original Equipment Manufacturers (OEMs) like Samsung for Android distribution

The Android operating system's reach is entirely dependent on Original Equipment Manufacturers (OEMs) like Samsung. Samsung has an aggressive deployment target, planning to expand its Galaxy AI platform, which leverages Google's Gemini, to more than 400 million handheld devices by the end of 2025, effectively doubling its reach from the 200 million devices it had in 2024. User engagement is high; more than 70% of Galaxy S25 users actively engage with Galaxy AI tools. Still, this partnership faces near-term risk as Samsung explores integrating AI agents from competitors like OpenAI and Perplexity AI into future devices, pushing Alphabet to ensure Gemini remains the most compelling default experience.

Content creators and media companies for YouTube and Google News

YouTube's dominance in digital media is cemented by its creator ecosystem. In 2025, creator platforms like YouTube are projected to capture more than half of content-driven advertising revenue, with an estimated $189.9 billion in ad revenue for the year, marking a 20% increase from 2024. For context, YouTube's Q1 2025 ad revenue alone reached $8.93 billion, a 10.4% year-over-year increase. The platform also supports over 270 million paid subscriptions across its services. Content creators are the lifeblood, and YouTube's ability to attract and monetize them-often through direct revenue sharing agreements-is paramount to maintaining its lead, where it commanded an 11.6% share of time spent viewing across media in February 2025, according to Nielsen.

Third-party advertisers and publishers (AdSense/AdMob)

The AdSense and AdMob networks rely on a vast network of third-party publishers and advertisers to function. While the exact partner count isn't immediately public, the ecosystem is constantly evolving its monetization and compliance framework. For AdMob, 2025 saw the addition of new bidding partners like InMobi, ironSource, and Unity joining the mediation platform in July, with Moloco and LINE expected later in the year. Payout flexibility for US publishers expanded in February 2025 to include direct deposits via Hyperwallet, alongside existing PayPal and Venmo options. These updates show Alphabet actively managing the demand and supply sides of its programmatic advertising engine.

Strategic enterprise partners like Honeywell for Gemini AI integration

Strategic enterprise alliances are crucial for embedding Google's AI into the physical world. The partnership with Honeywell, announced for solutions rolling out in 2025, exemplifies this. This collaboration integrates Gemini's capabilities via the Vertex AI platform with Honeywell's industrial data collected through its Forge platform. The goal is to deliver AI-driven insights to industrial customers, aiming to reduce maintenance costs and increase operational productivity. Honeywell is also exploring using the on-device Gemini Nano model to enhance edge AI devices for tasks like voice-guided workflows without cloud connectivity.

Finance: draft 13-week cash view by Friday.

Alphabet Inc. (GOOG) - Canvas Business Model: Key Activities

The Key Activities for Alphabet Inc. revolve around massive, sustained investment in technology, managing a global-scale digital ecosystem, and aggressively pursuing leadership in Artificial Intelligence.

Massive Research and Development (R&D) in AI, including Gemini models

Alphabet's commitment to R&D is substantial, directly fueling its AI ambitions. For the twelve months ending September 30, 2025, Research and Development Expenses totaled $55.631 billion, representing a 15.12% increase year-over-year. This spending underpins the development of foundational models and next-generation product features.

Key AI development metrics as of late 2025 include:

• The flagship Gemini model processes 7 billion tokens per minute via direct API use by customers.
• The Gemini App has reached 650 million active users.
• The company executed the global rollout of AI Overviews and AI Mode in Search in record time.
• The Gemini 3 model was pronounced superior to OpenAI's offering.

Global technical infrastructure management (data centers, fiber network)

This activity is characterized by an aggressive capital expenditure plan to build the physical foundation for AI and cloud services. Alphabet now expects 2025 capital expenditures to be in a range of $91 billion to $93 billion, up from a previous estimate of $85 billion. This positions Alphabet as one of the world's top three infrastructure investors for the year.

The scale of the physical assets supporting these activities is growing rapidly:

Investment in infrastructure supports core services and is critical for advancing AI initiatives like the Gemini model.

Developing and maintaining core platforms (Search, Android, Chrome, YouTube)

The core platforms continue to generate massive revenue, with AI integration being a key maintenance and development focus across the board. The Google Services segment delivered revenues of $87.1 billion in Q3 2025.

Platform performance highlights from Q3 2025:

• Google Search & other revenue: $56.57 billion, up 15% year-over-year.
• YouTube advertising revenue: $10.26 billion, up 15% year-over-year.
• Total advertising revenue: $74.18 billion, up 13% year-over-year.
• YouTube paid subscriptions (including YouTube Premium): More than 300 million subscribers.

Selling and servicing enterprise cloud solutions (Google Cloud Platform)

Google Cloud Platform (GCP) is a primary growth engine, heavily driven by demand for AI Infrastructure and Generative AI Solutions. This segment is rapidly scaling its profitability and contract value.

The annual revenue run-rate for Google Cloud exceeded $50 billion as of Q2 2025. The backlog growth rate reached 82% in a single year.

Hardware design and manufacturing (Pixel, Nest, Fitbit)

Hardware sales are grouped within the "Platforms and Devices" category, contributing to the overall Google Services revenue. This activity supports the ecosystem integration of Google's software and AI capabilities.

For the second quarter of 2025, revenue from subscriptions and hardware sales under the "Platforms and Devices" category reached $11.2 billion.

Alphabet Inc. (GOOG) - Canvas Business Model: Key Resources

You're looking at the core assets that keep Alphabet Inc. running and growing, especially in this AI-dominated landscape. These aren't just line items on a balance sheet; they are the engines of future value creation, and they require massive, sustained investment. Honestly, the scale of what they are building is hard to grasp without looking at the numbers.

Proprietary AI Models and Custom Silicon

The in-house development of AI models and the hardware to run them is perhaps the most critical resource right now. Alphabet Inc. is aggressively pursuing vertical integration here to control costs and accelerate innovation cycles. The latest model, Gemini 3, launched on November 18, 2025, and was trained entirely on their custom Tensor Processing Units (TPUs). This strategy aims to reduce reliance on external GPU providers.

The scale of their silicon advantage is significant. A single TPU v7 pod, which uses 9,216 chips connected via Google's proprietary Inter-Chip Interconnect, delivers approximately forty times the aggregate compute of Nvidia's largest NVL72 rack configuration. This architectural advantage is translating into real-world performance metrics; Google stated that its token processing volumes rose from 480 trillion in April to 1,300 trillion in October 2025. Furthermore, Google Cloud is now used by nine of the world's largest AI labs by size, showing the external validation of this stack.

Key metrics related to AI adoption include:

• Gemini app monthly active users: over 650 million.
• AI Overviews monthly users: over 2 billion.
• Developers using Gemini 2.5: nine million.
• AI Max in Search unlocking billions of net new queries in Q3 2025 alone.

Global Technical Infrastructure

To power Gemini, Cloud, and all other services, Alphabet Inc. requires a colossal global technical infrastructure. This is reflected directly in their Capital Expenditure (CapEx) plans. For the full fiscal year 2025, management updated guidance to a range of $91 billion to $93 billion. This is a substantial increase from the previous estimate of $85 billion, showing the accelerating pace of investment needed to meet AI and cloud demand.

Here's a look at the spending focus:

This level of spending is necessary to maintain the competitive edge, even if it compresses near-term free cash flow due to rising depreciation.

Dominant Global Market Share

Market dominance in core areas remains a foundational resource, providing the scale for data collection and revenue generation. While competition is intensifying, Alphabet Inc. still commands leadership positions in key global markets. Search, which still accounts for more than half of Google's revenues, has shown resilience against new AI rivals.

Market share statistics, though slightly lagging to late 2024, illustrate this scale:

• Global Search Market Share (December 2024): 89.73%.
• Android Mobile Web Traffic Share (December 2024): 73.49% worldwide.
• Android Share in India: more than 95% of mobile web traffic.

The company also surpassed 300 million paid subscriptions across services like Google One and YouTube Premium, which adds to its sticky user base.

Vast User Data Pool

The sheer volume of user interaction across Search, YouTube, and Android creates an unparalleled data resource. This data feeds the machine learning systems, improving ad targeting and refining models like Gemini. While a single, definitive data pool size isn't public, the activity metrics show the scale of data ingestion:

Alphabet's Q3 2025 revenue reached $100 billion for the first time ever, driven by these engaged user bases. The company's ability to connect user intent (from Search) with consumption patterns (from YouTube) and device usage (from Android) is what makes its ad targeting so effective. The growth in AI Overviews, now used by over 2 billion users across 40 languages, means the data being generated and processed by the AI layer is growing exponentially.

Highly Skilled AI/ML Engineering Talent

The intellectual capital-the people who design, train, and deploy these complex systems-is a non-negotiable resource. Despite industry-wide layoffs, Alphabet Inc. CEO Sundar Pichai signaled a commitment to expanding the engineering workforce, expecting growth in the engineering base at least into 2026. This is because AI is viewed as an augmentation tool, making engineers dramatically more productive, not immediately replaceable.

The focus of hiring has shifted; it's no longer just for pure AI researchers. The demand is for AI-fluent professionals across the board:

• Software Engineers specializing in GenAI/LLMs.
• Product Managers for AI/automation projects.
• Finance Analysts for AI-related initiatives.

This talent is essential for operationalizing AI at scale, moving beyond model creation to governing and scaling AI-powered products globally. Finance: draft 13-week cash view by Friday.

Alphabet Inc. (GOOG) - Canvas Business Model: Value Propositions

For Users: Free, universally accessible information and communication tools.

• AI Mode, rolled out across 40 languages, reached 75 million daily active users in Q3 2025.
• AI Overviews, an AI-driven feature, continued to expand query volume across Google Search.
• Google Search market share in October 2025 was slightly higher than in August 2025, with a general market share around 90%.
• Alphabet's browser market share grew to 73% as of October 2025.

For Advertisers: Unmatched reach to billions of users across Search and YouTube.

Alphabet Inc. reported total consolidated revenue of $102.3 billion in Q3 2025, marking its first-ever $100 billion quarter. The Google Services segment, which houses the core advertising businesses, generated $87.1 billion in revenue.

The growth in Search was supported by a 7% year-over-year increase in paid clicks and a 7% year-over-year increase in cost-per-click in Q3 2025. AI Max for Search unlocked billions of net new queries in the quarter. On YouTube, the annual run rate for direct response ads on television reached $1 billion in the quarter.

For Enterprises: Leading AI infrastructure and solutions (Vertex AI) with a $155 billion cloud backlog.

Google Cloud revenue in Q3 2025 was $15.2 billion, showing a 34% year-over-year increase. The remaining performance obligation, or backlog, stood at $155 billion, representing an 82% increase from 2024. This backlog growth was 46% quarter-over-quarter. Operating income for the cloud division grew by 85% year-over-year, with the operating margin reaching 23.7%. Revenue from products built on Alphabet's first-party generative AI models grew over 200% year-over-year in Q3 2025. Across all surfaces, Alphabet's AI systems process over 1,300 trillion monthly tokens, with first-party models processing circa 300 trillion monthly tokens via direct API use.

For Developers: Open-source platforms (Android) and cloud tools (GCP).

• Android has over 3.5 billion active users.
• Three quarters of all smartphones in the world run the Android operating system.
• 60% of the top 1,000 apps in the Play Store were using Jetpack Compose as of late 2025.
• Over 9 million developers were building applications on Gemini as of Q2 2025.

For Subscribers: Ad-free content and cloud storage (YouTube Premium, Google One).

The Google subscriptions, platforms, and devices segment delivered $12.9 billion in revenue for Q3 2025, growing 21% year-over-year.

• YouTube Premium and Music reached over 125 million subscribers as of early 2025.
• YouTube Premium subscribers grew 25% from 100 million in early 2024 to early 2025.
• Google One surpassed 150 million paid subscribers as of May 2025, a 50% growth in 15 months.
• The Google One AI Premium Plan attracted millions of subscriptions since its launch.

Alphabet Inc. (GOOG) - Canvas Business Model: Customer Relationships

The customer relationship strategy for Alphabet Inc. (GOOG) is highly segmented, reflecting the diverse nature of its consumer, enterprise, and developer bases.

Largely automated, self-service digital interactions for consumer products.

For the vast majority of Alphabet Inc.'s consumer base, interactions are managed through scalable, automated digital interfaces. This is evident in the adoption rates of its AI products, which serve as the primary touchpoint for information retrieval and task completion. The Gemini App now reports over 650 million monthly active users as of Q3 2025. Furthermore, the first-party models, like Gemini, process approximately 7 billion tokens per minute via direct API use by customers. This level of scale suggests a reliance on automated, self-service support and interaction models. General industry projections for 2025 suggest that 85% of customer interactions will be managed without human intervention, aligning with Alphabet Inc.'s digital-first approach for consumer services.

Dedicated sales teams and technical support for large enterprise cloud customers.

The relationship with large enterprise customers, primarily through Google Cloud, shifts entirely to high-touch, dedicated support structures. This is necessitated by the complexity and high value of the services provided. Google Cloud ended Q3 2025 with a total contract backlog of $155 billion. The number of new Google Cloud Platform customers increased by roughly 34% year-over-year in Q3 2025, indicating significant sales team engagement. To further illustrate the depth of these relationships, Alphabet Inc. signed more deals worth more than $1 billion through Q3 2025 than it did in the previous two full years combined. A strong indicator of deep integration is that 70% of Google Cloud customers now utilize Alphabet Inc.'s AI products.

Community and developer relations for Android and open-source projects.

The relationship with developers is managed through platform governance, tooling, and community engagement. The global developer population is expected to reach 28.7 million people by 2025. Alphabet Inc. maintains control and quality over this ecosystem through the Google Play Store, where it rejected the publication of 2.36 million policy-violating apps and banned over 158,000 developer accounts in a recent period to maintain trust. Within the development community, there is a clear trend toward adopting modern toolchains; since Google I/O 2025, 60% of the top 1,000 apps in the Play Store are now using Jetpack Compose. The platform mandates technical compliance, such as requiring new apps targeting newer OS versions to support 16 KB page sizes starting November 1st, 2025.

Subscription management for over 300 million paid subscribers (Q3 2025).

A growing segment of Alphabet Inc.'s customer base is managed through recurring subscription relationships, which provides stability outside of advertising cycles. As of Q3 2025, Alphabet Inc. has over 300 million paid subscriptions, driven by services like Google One and YouTube Premium. The revenue generated by the segment encompassing these subscriptions, platforms, and devices was $12.87 billion in Q3 2025, up from $10.66 billion in the same quarter last year.

The scale of these customer relationship touchpoints can be summarized:

Alphabet Inc. (GOOG) - Canvas Business Model: Channels

Direct access forms the primary conduit for Alphabet Inc.'s largest revenue streams. The core search engine, Google.com, remains the dominant channel for advertising revenue. In the third quarter of 2025, Google Search & other advertising revenue hit $56.6 billion. YouTube.com serves as the video content channel, bringing in $10.26 billion in advertising revenue for Q3 2025. The Google Play Store is a key platform channel, grouped with subscriptions and devices, which collectively generated $12.87 billion in revenue for the same quarter.

Mobile distribution relies heavily on the Android operating system. As of Q3 2025 data, Android leads the global smartphone OS market with a share of 71.4%, or 72% for smartphones and other mobile devices. This massive installed base, totaling approximately 3.9 billion users worldwide, serves as a crucial channel for distributing Google services and driving platform revenue.

Direct-to-consumer sales handle Alphabet Inc.'s hardware offerings, such as Pixel smartphones and smart home products. These sales are reported within the 'Google subscriptions, platforms, and devices' segment. For Q3 2025, this combined segment revenue was $12.87 billion. While the exact hardware component isn't isolated, this channel is integral to the ecosystem strategy.

The enterprise channel is spearheaded by the dedicated sales force for Google Cloud Platform (GCP) and Google Workspace. Google Cloud revenue surged to $15.2 billion in Q3 2025, representing an annual run rate of nearly $61 billion. This channel is seeing significant deal velocity; Alphabet signed more deals over $1 billion through Q3 2025 than in the previous two years combined. Furthermore, demand for AI infrastructure is high, with more than 70% of existing Google Cloud customers utilizing their AI products.

Here is a snapshot of the key revenue-generating channels based on Q3 2025 performance:

The distribution via Android is supported by its vast user base, which is segmented regionally:

• Global Mobile OS Market Share (Q3 2025): 71.4%
• Total Android Users (2025): 3.9 billion
• Android Share in India: Over 85%
• Android Share in US: 41.71%
• Android Share in Europe: 66%

The enterprise sales channel for Google Cloud is further evidenced by its contracted future revenue:

• Google Cloud Backlog (as of Q3 2025): $155 billion
• Backlog Growth Year-over-Year: 46%
• Google Cloud Operating Margin (Q3 2025): 23.7%

Alphabet Inc. (GOOG) - Canvas Business Model: Customer Segments

You're looking at the sheer scale of the user base Alphabet Inc. serves; it's not just one market, it's practically the digital world.

The foundation of Alphabet Inc.'s business model rests on capturing and serving billions of global internet users, which then creates the funnel for its other high-value segments.

Global Internet Users and Core Product Engagement

The sheer reach of the core platforms is unmatched. You have to remember that the user base for the main services is massive, which is the engine for everything else.

• Each of Google's core products, including Android, Chrome, Gmail, Google Maps, Google Play, Search, and YouTube, has over one billion monthly active users.
• AI Overviews now has over 2 billion monthly users across more than 200 countries and territories.
• The Gemini conversational AI chatbot reached 650 million monthly active users as of October 2025.
• AI Mode, available in the US and India, has reached 100 million users.
• Google Search maintains dominance, handling over 70% of worldwide online search requests.

Small, Medium, and Large Businesses (SMBs) for Digital Advertising

This segment is the historical cash cow, driven by the advertising platforms that connect businesses to the massive user base mentioned above. The data shows that even with AI growth, advertising remains central.

• Google Ads holds an 80.20% market share in the pay-per-click (PPC) market as of 2025.
• Alphabet is expected to capture 24.6% of the overall digital advertising market by 2025.
• For the second quarter of 2025, Google Services revenue, which includes advertising, was $82.5 billion.
• Search advertising revenue for Q2 2025 was approximately $54.2 billion (part of Search and Other).

Enterprise and Government Organizations for Cloud Computing and AI Services

This is where the high-growth, high-margin enterprise spending comes in, heavily focused on AI infrastructure and data analytics. It's a clear strategic pivot point for Alphabet Inc.

Here's a quick look at the scale of Google Cloud's enterprise and government customer base and financial footprint as of late 2025:

Paid Consumers for Subscriptions and Hardware

The push for recurring revenue through paid services is a major focus, moving beyond just ad-supported models. These numbers show solid traction, especially with the AI-enhanced offerings.

• Alphabet now has over 300 million paid subscriptions across its platforms.
• Google One subscribers globally have crossed 150 million.
• YouTube Music and Premium subscribers globally total over 125 million (including trials).
• Revenue from the Subscription Platforms and Devices segment reached $12.9 billion in Q2 2025.

Alphabet Inc. (GOOG) - Canvas Business Model: Cost Structure

The Cost Structure for Alphabet Inc. is heavily weighted toward massive, ongoing investment in its core technology and the global workforce that builds and maintains it. You're looking at a cost base driven by scale, innovation, and the competitive necessity of securing digital real estate.

High Capital Expenditures for Technical Infrastructure

The single largest capital outlay is for the physical backbone of its services: data centers, servers, and networking equipment, all essential for supporting Google Cloud and its growing suite of AI products. This spending has accelerated significantly to meet the demand for AI infrastructure.

Here are the key figures showing this massive investment trend:

The Q2 2025 update shows a further increase from the $85 billion guidance, underscoring the aggressive pace needed to secure AI compute capacity. This spending is primarily directed toward servers, which account for about two-thirds of the quarterly CapEx spend, with the remainder going to data centers and networking gear.

Traffic Acquisition Costs (TAC)

Traffic Acquisition Costs represent payments made to distribution partners, such as browser developers, mobile operating system owners, and website publishers, to secure prominent placement for Google Search and other services. This is a direct cost tied to revenue generation from the core advertising business.

• Total TAC for Q1 2025 was $13.748 billion.
• Total TAC for Q1 2024 was $12.946 billion.

You'll note that network revenues, which carry a much higher TAC rate, saw a decline in Q1 2025, which impacts the overall TAC percentage relative to revenue.

Significant R&D Spending

Research and Development is the lifeblood of Alphabet Inc., funding everything from core search improvements to long-term 'Other Bets.' This spending is non-negotiable for maintaining technological leadership, especially in AI.

The scale of R&D investment is substantial:

• R&D Expenses for the twelve months ending September 30, 2025, reached $55.631 billion.
• R&D Expense in Q1 2025 was $13.6 billion, representing 15% of sales for the quarter.
• This Q1 R&D expense was an increase of 14% year-over-year, primarily driven by compensation and depreciation.

Employee Compensation for a Massive, Highly Skilled Global Workforce

The cost of human capital is a major component of the operating expenses, reflecting the need to attract and retain top engineering and research talent globally. This is evident in the R&D cost breakdown.

As of the end of Q1 2025, Alphabet employed 185,719 people. The cost pressure from this workforce is clear:

• In Q1 2025, the increase in R&D expenses included $697 million specifically attributed to higher employee compensation expenses for R&D staff.
• Sales and Marketing expenses decreased in Q1 2025, partly reflecting a decline in compensation expenses in that specific area.

Content Acquisition Costs for YouTube and Google Play

While specific content acquisition costs are bundled within the Total Cost of Revenue, the growth in this area is a clear driver of expense, particularly for YouTube's expanding content ecosystem.

In Q1 2025, Total Cost of Revenue was $36.4 billion. The increase in this line item was noted as being 'primarily driven by content acquisition costs largely for YouTube' followed by depreciation and technical infrastructure operations costs. This signals that securing premium content and creator deals is a necessary, variable cost to maintain YouTube's competitive position against other streaming and short-form video platforms.

Finance: draft 13-week cash view by Friday.

Alphabet Inc. (GOOG) - Canvas Business Model: Revenue Streams

You're looking at the core engine driving Alphabet Inc.'s massive scale as of late 2025, and honestly, it's still about the ads, but the diversification is real.

Google Search and other advertising revenue hit $56.6 billion in the third quarter of 2025. That number, up $\text{15%}$ year-over-year according to some reports, shows the bedrock of the business remains incredibly strong, even with AI Overviews rolling out everywhere.

Next up, you have the enterprise powerhouse: Google Cloud services. This segment brought in $15.2 billion in Q3 2025, marking a $\text{34%}$ year-over-year growth rate. That growth is definitely accelerating Alphabet's overall revenue, which crossed the $100 billion mark in a single quarter for the first time ever in Q3 2025.

The video advertising engine, YouTube advertising revenue, contributed $10.3 billion in the same quarter. That's a solid $\text{15%}$ jump, showing that even with Shorts competing for attention, the overall monetization picture is improving.

For the non-advertising side of Google Services, you see the growth in recurring revenue streams. The combined Google Services non-advertising (subscriptions, hardware, apps) revenue was $12.9 billion in Q3 2025. This bucket is where you track the health of things like hardware sales and paid content.

Here's a quick look at those key revenue streams from Q3 2025, just to keep the scale clear:

The growth in subscriptions is notable, as management pointed out they now have over 300 million paid subscriptions across services like YouTube Premium and Google One. You can see the components that make up that $\text{12.9 billion}$ figure:

• YouTube Music and Premium subscriptions.
• Google One cloud storage plans.
• Sales from the Play Store.
• Hardware sales (Pixel, Chromebooks).

Finally, you have the Other Bets revenue, which remains minor in the grand scheme. This segment, which includes Waymo and Verily, generated $344 million in revenue for the quarter. Still, these long-term, capital-intensive projects carried an operating loss of about $1.4 billion in the same period, showing they are still in the investment phase, though necessary for future optionality.

Finance: draft 13-week cash view by Friday.