Alphabet Inc. posted the largest quarterly profit in its history, with most of the $112.1 billion windfall coming from paper gains on investments in Anthropic and newly public SpaceX, not from its Search or Cloud business. Alphabet earned $9.11 per share on $119.8 billion in revenue, up 24% from a year earlier, and recorded a roughly $98 billion net gain mainly from equity investments. SpaceX priced its record IPO at a $1.75 trillion valuation, lifting the value of Alphabet’s holding. Anthropic raised $65 billion in May at a $965 billion valuation, weeks after Google committed $10 billion upfront and as much as $30 billion more if Anthropic meets performance targets. Anthropic has signed multibillion-dollar agreements for Google’s cloud infrastructure and AI chips, connecting its expansion to Google Cloud, where revenue surged 82% to $24.8 billion. CEO Sundar Pichai said, "Our AI investments are redefining what’s possible across every part of our business." Despite results, Alphabet’s shares dropped 3% in after-hours trading after it raised its 2026 capital-spending forecast to $195 billion to $205 billion from $180 billion to $190 billion, while free cash flow turned negative by $5.9 billion.