Google parent company, Alphabet, released Q2 earnings on Tuesday, exceeding expectations for the quarter. It reported $84.7 billion in revenue, up 14% from the same period last year, driven by demand for its cloud computing services as well as search.

According to Alphabet, this was the first quarter that Google’s cloud service exceeded $10 billion in quarterly revenues and $1 billion in operating profit.

“We are innovating at every layer of the AI stack,” said Sundar Pichai, Google CEO. “Year-to-date, our AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenues and are being used by more than two million developers.”

However, YouTube’s ad revenue missed estimates, even though it grew to $8.66 billion compared to $7.66 billion in the year-ago quarter. The result led to Alphabet’s stock dropping 2%.

Net income, meanwhile, rose 28.6% to $23.6 billion, beating estimates of $22.9 billion.