Half of Google's Code is Now Written by AI

AI Takes Over Half of Google's Codebase

Alphabet has disclosed that approximately fifty percent of its code is now generated by artificial intelligence coding agents, marking a dramatic acceleration in how the tech giant builds software. The revelation came during the company's fourth-quarter 2025 earnings call on February fourth, delivered by CFO Anat Ashkenazi.

A Rapid Climb from Twenty-Five to Fifty Percent

The milestone represents a remarkable trajectory. In October 2024, CEO Sundar Pichai revealed that more than a quarter of Google's new code was AI-generated. By April 2025, that figure had climbed to roughly thirty percent. Now, just fifteen months after the initial disclosure, the company has doubled that number. Ashkenazi described how AI coding tools allow engineers to accomplish more within existing team sizes, framing the technology as a productivity multiplier rather than a workforce replacement.

An Industry-Wide Transformation

Alphabet is not alone in this shift. Microsoft CEO Satya Nadella reported in April 2025 that AI was generating approximately thirty percent of code at the software giant. Anthropic has gone even further, with estimates suggesting seventy to ninety percent of its code is now AI-authored. Cisco revealed that seventy percent of its AI product code is machine-generated, with plans for several products to reach one hundred percent AI-written code in 2026.

Record Revenue and Massive AI Bets

The efficiency gains coincide with Alphabet's strongest financial performance ever. Fourth-quarter revenue hit one hundred and thirteen point eight billion dollars, up eighteen percent year-over-year, while annual revenue surpassed four hundred billion dollars for the first time. Google Cloud posted a forty-eight percent revenue surge to seventeen point seven billion dollars.

Infrastructure Spending Doubles Down

Perhaps most striking is Alphabet's capital expenditure guidance for 2026, ranging from one hundred and seventy-five billion to one hundred and eighty-five billion dollars. This nearly doubles the prior year's spending and far exceeds analyst expectations. Approximately sixty percent will fund servers, with the remainder going to data centres and networking equipment, underscoring management's conviction that scaling AI infrastructure remains critical to future growth.