Google, however, pushed back on the report.

Google’s Cloud platform brought in $24.77 billion, above an expected $24.56 billion and well ahead of the $13.6 billion it brought in last year. Advertising revenue came in at $81.63 billion. Analysts were looking for $81.12 billion.

“Q2 was an amazing quarter, with Alphabet revenues growing 24% year over year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions,” CEO Sundar Pichai said in a statement.

Remaining performance obligations (RPOs), or contracts that Google still has to deliver on, hit $514 billion. Wall Street analysts were projecting $488.1 billion.

Investors have recently pulled back on the AI trade as they continue to digest massive spending on data centers and chips to power their AI platforms. At the same time, tech companies have repeatedly stated that they are capacity-constrained, with demand for computing power outstripping available supply.

Alphabet’s Google, like its AI rivals, is also under constant pressure to release ever more powerful AI models. Any delay could give a challenger the space it needs to outmaneuver the competition.

According to Bloomberg, Google has delayed its Gemini 3.5 Pro model over concerns related to its capabilities compared to other leading models.

“We’re shipping quickly across a wide range of models while keeping them highly cost-effective for customers,” a spokesperson told Yahoo Finance. “We’re currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we’re productively engaged with the US government.”

Alphabet stock has fared better than that of its competitors, rising roughly 4% over the past three months, though shares are off their 52-week high.

Amazon (AMZN) stock has been about flat over the past three months, while Meta (META) has declined nearly 6%. Microsoft (MSFT) stock is off 5%.