How Alphabet Stock Could Benefit From AI Monetization Beyond Ads

Alphabet drives the internet’s most effective money generating operation. During the third quarter of 2025, the company generated an incredible $74 billion through its digital advertising business. This resulted from billions of users who spent time on their platform through scrolling, searching and watching content, while making unplanned purchases.

However, the main question for Alphabet deals with its ability to generate profits through artificial intelligence in other ways as well, because at this point there should be other ways to make Alphabet more unique.

Monetizing Free Services through Gemini

Alphabet has succeeded because it uses free products to create profitable businesses, and it seems like Gemini will become its next money-making applicant. The AI model had around 650 million monthly active users in the third quarter, where most of them are using the free plan.

As per the reports in December, Alphabet planned to implement advertising for Gemini, but Google DeepMind CEO, Demis Hassabis, later announced that no such plans exists for now.

Alphabet does not require to rush at the moment because it has enough time. The company is capable of generating substantial revenue from its advertising business, if it introduces even a small amount of advertising into Gemini. After all, this is the company that created modern digital advertising systems and it excels in it.

Upper Hand in AI Ads Belongs to Alphabet

Alphabet can continue its current business model, while other companies must develop new operational systems to fund their artificial intelligence research. On one hand, the internal testing of ads for OpenAI’s ChatGPT system will exist in the near future, because the platform has expensive computing resources to operate.

On the other hand, Alphabet owns the most advanced advertising infrastructure, which exists worldwide, but it still needs to compete with the market that requires new ways to do so. 

Google has developed its business model through many years of work, which now uses artificial intelligence to deliver accurate results combined with relevant advertisements and smarter technologies. Alphabet definitely has the ability to create such advertising systems, which become less disruptive and intrusive, and are more beneficial for users who operate AI systems. 

Data, Scale, and an Unfair Advantage 

Data serves as the fundamental element that distinguishes Alphabet from other companies. Gemini operates as more than a standard chatbot, as it is very much incorporated in Google Search and in the extensive Google ecosystem. This results in Alphabet being able to study user patterns of AI usage at a massive scale, which ultimately enhances their products and strategies.

So, when other companies struggle in creating a new strategy for the users, Alphabet relies on its established strategy that involves free product distribution and essential product development to generate revenue through audience engagement. 

Bottom Line

Alphabet requires AI to enhance its current operations, along with creating new revenue streams through separate business ventures. The company already has revenue generation methods, which exist through ads in Gemini, improved Google Search targeting, and AI tools that extend the user engagement times.

Alphabet will proceed to execute its revenue-generating strategies through controlled and unobtrusive methods, which will result in high-profit margins. Alphabet uses AI as its primary future technology, but it also serves the company to achieve its strength of converting free products into profitable assets.