The search giant predicted a further capital spending boost next year and cited massive demand for its cloud computing services.

Alphabet reported second-quarter results on Wednesday that beat on revenue and earnings, but the company said it would raise its capital investments by $10 billion in 2025. Shares of the company were up as much as 3% in after-hours trading. The company’s overall revenue grew 14% year over year, higher than the 10.9% Wall Street expected.

Wednesday’s report follows Alphabet’s better-than-expected Q1 release earlier this year, in which the company reported year-over-year growth of 12% and 49% for its top and bottom lines, respectively, after Google’s search unit generated more in sales than analysts projected.

Alphabet , faced with unprecedented threats from AI rivals, will be keen to assure investors this week that the company's own spending on the technology is helping it dig a deeper moat around its search and advertising businesses.

Google’s accelerating shift into artificial intelligence helped propel its corporate parent to another quarter of solid growth while a crackdown on its internet empire looms in the background

The UK's competition regulator may require Google to offer users alternative search engines; change how it ranks searches; and improve data portability.