Google CEO Sundar Pichai has described artificial intelligence (AI) as the most significant technological shift of the current era, saying it is transforming every part of Google's business, from Search and Cloud to enterprise services.
Pichai said AI is driving growth across the company's operations and helping create new business opportunities. According to him, demand for Google's AI products and services is currently exceeding the company's available capacity.
“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are meaningfully exceeding available supply,” he said.
Gemini expansion and new AI models
Pichai highlighted the rapid progress of Google's Gemini AI models, saying the company has continued to roll out more capable AI products and services since the launch of Gemini 3 last November.
Since launching Gemini 3, Google has introduced increasingly capable generative media models, expanded AI features across Chrome and the Gemini app, launched Antigravity, and released the first model in the Gemini 3.5 series.
Massive infrastructure investments
Pichai said supporting AI services for billions of users, developers and enterprises worldwide requires significant investments in computing infrastructure.
According to him, Google spent approximately $31 billion in capital expenditure in 2022. This year, the company expects that figure to rise to between $180 billion and $190 billion, nearly six times higher than 2022 levels and roughly double last year's spending. He added that capital expenditure is expected to increase further in 2027, with most of the investment directed toward technical infrastructure.
To support these investments, Google plans to rely on a combination of strong operating cash flow, debt issuances and equity offerings.
AI business gains momentum
Pichai said Google's AI business continues to perform strongly as more users adopt the company's premium AI offerings, advanced models, expanded storage options and productivity tools.
According to him, Google recorded its strongest-ever quarter for consumer AI plans and remains well positioned to drive profitable growth through AI-related opportunities across advertising, subscriptions, cloud services, model development, infrastructure and real-world services.
Gemini 3.5 rollout underway
Pichai said Google recently launched Gemini 3.5 Flash and expects Gemini 3.5 Pro to become available in June.
The latest version includes improvements focused on agentic coding, long-horizon tasks and real-world capabilities.
Beyond Gemini, Google's generative media models are also witnessing strong adoption. Pichai noted that Nano Banana has been used to generate more than 50 billion images to date. The company also recently unveiled its latest Omni model during the I/O conference.
AI usage growing rapidly
Pichai said one way to measure the growth of AI is through tokens, the fundamental units of data processed by AI models.
According to him, Google was processing around 9.7 trillion tokens every month, two years ago. That figure has now surged to 3.2 quadrillion tokens per month, representing an increase of more than 300 times across Google's platforms.
He added that Gemini now powers all 13 Google products with more than one billion users, including five products that have crossed three billion users.
Search and Gemini App continue to grow
Pichai said Google's Search business is benefiting significantly from AI integration.
According to him, AI Overviews now reach more than 2.5 billion users every month, making Google Search one of the largest AI-powered consumer products globally. He also said AI Mode, which was launched a year ago, has already crossed one billion monthly users.
Comparing AI's impact to the transition from desktop to mobile computing, Pichai said AI is creating a similar expansion opportunity for Search. He noted that users engage more frequently with Search when they use AI-powered features, helping search queries reach an all-time high during the last quarter.
The Gemini app is also seeing strong adoption. Pichai said it has become one of Google's fastest-growing products, with more than 900 million monthly users, more than double the figure recorded a year ago.
Google has also begun rolling out Personal Intelligence, a feature that connects users with various Google applications to provide personalised recommendations and assistance. The feature is now available in more than 190 countries.