Alphabet and Meta Platforms’ Competition in AI
Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) are intensifying their competition in the artificial intelligence sector, following years of dominance in digital advertising. In 2025, Alphabet reported a revenue of $402.8 billion, a 15% increase from $350 billion in 2024, while Meta’s revenue reached $201 billion, up 22% from $164.5 billion in 2024. Despite both companies’ growth, Alphabet maintains a more diversified revenue model, with 73% of its income coming from advertising compared to Meta’s 98% reliance on advertising.
Alphabet’s Google Cloud division experienced a 36% growth year-over-year, generating $58.7 billion, driven by AI adoption among businesses. Additionally, Google has enhanced its AI systems through custom semiconductor chips. CEO Sundar Pichai noted a surge in search engine usage, solidifying Alphabet’s leadership despite the rise of competitors like OpenAI’s ChatGPT. As Alphabet expands its AI-powered Waymo self-driving car business internationally, it is well-positioned to lead in the AI landscape over the next decade.
