Other BetsThin moat

Alphabet (Google) (GOOGL) — moat facet

The drawer loses more as its best bet grows more valuable: $7.5 billion lost on $1.5 billion of revenue in 2025.

Other Bets is the only Alphabet line that loses money on purpose, and in 2025 it lost more than ever. It reported an operating loss of $7,515 million on revenue of $1,537 million1, or $4.89 lost for every dollar collected, against $2.70 a year earlier2. The line exists to hold businesses that may one day matter a great deal and today barely register in the revenue.

Other Bets operating loss per $1 of revenue$2.682023$2.702024$4.892025$4.92H1 2026Operating loss over revenue. Alphabet Form 10-K FY2025; Q1 and Q2 2026 releases
The ratio a maturing business would shrink nearly doubled in 2025, largely on a valuation-based compensation charge tied to Waymo.

Alphabet itself was created to hold them. In August 2015 Google announced a new parent company, Alphabet, with Google as a subsidiary; Sundar Pichai became chief executive of Google and Larry Page took the same post at Alphabet3. The point was to separate the internet business, which had to be judged on its margins, from projects far outside it, which had to be judged on progress. The filing still describes Other Bets as "a combination of multiple operating segments that are not individually material"4, a phrase that covers self-driving cars, life sciences, internet service and more. Two of the best known, Waymo and Isomorphic Labs, have their own pages under The Future Bets, and this page does not repeat them.

The revenue is small and not growing. It comes, in the filing's words, "primarily from the sale of autonomous transportation services and internet services"5, which means mainly Waymo's paid rides and the drawer's internet-service business. Other Bets brought in $477 million in 20176 and $1,648 million in 2024, then fell to $1,537 million in 20257. That is less than 0.4% of Alphabet's revenue8. Waymo's operations are growing quickly, with more than 450,000 paid rides a week by December 20259, but the drawer's revenue still fell in 2025, so the rides have yet to show up at a scale the line can register.

The losses are large and have been for years. As reported at the time, Other Bets lost $4,476 million in 2020 and $5,281 million in 202110. On the basis used since 2023, it lost $4,636 million in 2022 and $4,095 million in 202311. Then came $4,444 million in 2024 and $7,515 million in 202512. Across the six years that is more than $30 billion13, spent on businesses whose combined revenue in the latest year was about a seventh of a single quarter of YouTube's advertising14.

The 2025 jump has an unusual cause. The filing says the larger loss was "primarily driven by an increase in employee compensation expenses largely due to an increase in a valuation-based compensation charge related to Waymo"15. In plain terms, part of what Waymo pays its people is tied to what Waymo is worth, and Waymo has become worth a lot more. Alphabet led a $5.6 billion investment round in Waymo in October 202416, and in February 2026 Waymo announced a $16 billion round that valued it at $126 billion and brought in several new investors17. So the loss grew partly because the most important bet in the drawer succeeded. That is a better reason for a rising loss than most, but it is still a cost, and it will keep rising as long as the valuation does.

The first half of 2026 continued the pattern. Other Bets lost $2,100 million in the first quarter on $411 million of revenue18 and $1,799 million in the second on $382 million19, about $3.9 billion lost on $0.8 billion of revenue in six months20. Outside money is now carrying part of the load, which is the most encouraging structural change in the line: other investors are willing to fund at least one of these bets on its own merits.

The outlook for the line is mostly the outlook for Waymo, and that is argued on its own page. For the drawer as a whole, the useful discipline is to judge it the way Alphabet's founders asked, on progress rather than profit, while keeping an eye on the bill. The rating here is thin because nothing in the line yet earns its cost of capital, and the trajectory is steady because the spending is a choice Alphabet can make for as long as Search funds it.

The number that would change the verdict is the loss per dollar of revenue. It went from $2.68 in 2023 and $2.70 in 2024 to $4.89 in 202521. A business turning into a real one shows that ratio falling as its revenue grows. Until Waymo's fares, rather than its valuation, start to move the revenue line, which fell in the latest full year, the drawer remains a cost that Search pays.

Moat trajectory: Holding steady

Revenue is small and fell in 2025, and the operating loss grew to $7.5 billion, largely on a valuation-based compensation charge tied to Waymo. Outside investors are now funding Waymo alongside Alphabet, which is progress, but the line as a whole is no closer to earning its keep.

The number that tests this moat
Moat Explorer calc
Operating loss per revenue dollar
$4.89 (2025), from $2.70 (2024)

A business turning into a real one shows this ratio falling as revenue grows. In 2025 revenue fell and the loss rose to $7.5B, largely on a valuation-based compensation charge tied to Waymo.

How it's calculated: Other Bets operating loss ÷ Other Bets revenue: $7,515m ÷ $1,537m (2025); $4,444m ÷ $1,648m (2024).
Source: Alphabet Form 10-K, FY2025 (segment information) ↗
References
  1. ReportedIt reported an operating loss of $7,515 million on revenue of $1,537 million, or $4.89 lost for every dollar collected, against $2.70 a year earlier.
    Alphabet Form 10-K, FY2025 — segment note and MD&A: operating income Google Services $95,858m / $121,263m / $139,404m on revenue of $272,543m / $304,930m / $342,721m; Google Cloud $1,716m / $6,112m / $13,910m, with employee compensation $19,054m / $20,519m / $22,078m and other costs $12,318m / $16,598m / $22,717m; Other Bets $(4,095)m / $(4,444)m / $(7,515)m; Alphabet-level activities $(9,186)m / $(10,541)m / $(16,760)m, primarily shared AI research and development (2023 / 2024 / 2025) — FY2023–FY2025 · publ. February 5, 2026 · source ↗
  2. Moat Explorer calcIt reported an operating loss of $7,515 million on revenue of $1,537 million, or $4.89 lost for every dollar collected, against $2.70 a year earlier.
    Moat Explorer calculation from Alphabet's filed revenue and segment figures (Forms 10-K FY2019, FY2021, FY2022, FY2023, FY2025; Q1 and Q2 2026 releases) — growth rates, shares of revenue, compound annual growth, segment operating margins and loss-per-revenue-dollar ratios — FY2017–Q2 2026 · publ. Computed September 2026 · source ↗
  3. ReportedIn August 2015 Google announced a new parent company, Alphabet, with Google as a subsidiary; Sundar Pichai became chief executive of Google and Larry Page took the same post at Alphabet.
    CNBC, 'Google to become part of new company, Alphabet' (August 10, 2015) — Google becomes a subsidiary of Alphabet; Sundar Pichai becomes CEO of Google and Larry Page takes the same post at Alphabet — August 2015 · publ. August 10, 2015 · source ↗
  4. ReportedThe filing still describes Other Bets as "a combination of multiple operating segments that are not individually material", a phrase that covers self-driving cars, life sciences, internet service and more.
    Alphabet Form 10-K, FY2025 — Item 7, how each revenue type is generated (Search & other incl. distribution-partner traffic, Gmail, Maps and Play; Network = AdMob, AdSense and Google Ad Manager; subscriptions = YouTube TV, Music and Premium, NFL Sunday Ticket, Google One; platforms = Google Play; devices = Pixel; Cloud = GCP consumption fees and subscriptions, Workspace; Other Bets = autonomous transportation and internet services), TAC paid to distribution and Google Network partners, content acquisition costs primarily related to YouTube, and Note 15's description of Other Bets — FY2025 · publ. February 5, 2026 · source ↗
  5. ReportedIt comes, in the filing's words, "primarily from the sale of autonomous transportation services and internet services", which means mainly Waymo's paid rides and the drawer's internet-service business.
    Alphabet Form 10-K, FY2025 — Item 7, how each revenue type is generated (Search & other incl. distribution-partner traffic, Gmail, Maps and Play; Network = AdMob, AdSense and Google Ad Manager; subscriptions = YouTube TV, Music and Premium, NFL Sunday Ticket, Google One; platforms = Google Play; devices = Pixel; Cloud = GCP consumption fees and subscriptions, Workspace; Other Bets = autonomous transportation and internet services), TAC paid to distribution and Google Network partners, content acquisition costs primarily related to YouTube, and Note 15's description of Other Bets — FY2025 · publ. February 5, 2026 · source ↗
  6. ReportedOther Bets brought in $477 million in 2017 and $1,648 million in 2024, then fell to $1,537 million in 2025.
    Alphabet Form 10-K, FY2019 — revenues by type for 2017, 2018 and 2019: Search & other $69,811m / $85,296m / $98,115m; YouTube ads $8,150m / $11,155m / $15,149m; Google Network Members' properties $17,616m / $20,010m / $21,547m; Google Cloud $4,056m / $5,838m / $8,918m; Google other $10,914m / $14,063m / $17,014m; Other Bets $477m / $595m / $659m; total $110,855m / $136,819m / $161,857m — FY2017–FY2019 · publ. February 4, 2020 · source ↗
  7. ReportedOther Bets brought in $477 million in 2017 and $1,648 million in 2024, then fell to $1,537 million in 2025.
    Alphabet Form 10-K, FY2025 — Note 2, revenues by type: Google Search & other $175,033m / $198,084m / $224,532m; YouTube ads $31,510m / $36,147m / $40,367m; Google Network $31,312m / $30,359m / $29,792m; Google subscriptions, platforms, and devices $34,688m / $40,340m / $48,030m; Google Cloud $33,088m / $43,229m / $58,705m; Other Bets $1,527m / $1,648m / $1,537m; total revenues $307,394m / $350,018m / $402,836m (2023 / 2024 / 2025) — FY2023–FY2025 · publ. February 5, 2026 · source ↗
  8. Moat Explorer calcThat is less than 0.4% of Alphabet's revenue.
    Moat Explorer calculation from Alphabet's filed revenue and segment figures (Forms 10-K FY2019, FY2021, FY2022, FY2023, FY2025; Q1 and Q2 2026 releases) — growth rates, shares of revenue, compound annual growth, segment operating margins and loss-per-revenue-dollar ratios — FY2017–Q2 2026 · publ. Computed September 2026 · source ↗
  9. ReportedWaymo's operations are growing quickly, with more than 450,000 paid rides a week by December 2025, but the drawer's revenue still fell in 2025, so the rides have yet to show up at a scale the line can register.
    CNBC — Waymo crossed 450,000 weekly paid rides (Dec 2025), widening its lead over Tesla's robotaxi effort; 100K/wk (Aug 2024), 250K/wk (Apr 2025) — 2024-2025 · publ. Dec 8, 2025 · source ↗
  10. ReportedAs reported at the time, Other Bets lost $4,476 million in 2020 and $5,281 million in 2021.
    Alphabet Form 10-K, FY2021 — revenues by type for 2020 and 2021 (Search & other $104,062m / $148,951m; YouTube ads $19,772m / $28,845m; Google Network $23,090m / $31,701m; Google other $21,711m / $28,032m; Google Cloud $13,059m / $19,206m; Other Bets $657m / $753m) and segment operating income as then reported (Google Cloud $(5,607)m / $(3,099)m; Other Bets $(4,476)m / $(5,281)m) — FY2020–FY2021 · publ. February 2, 2022 · source ↗
  11. ReportedOn the basis used since 2023, it lost $4,636 million in 2022 and $4,095 million in 2023.
    Alphabet Form 10-K, FY2023 — revenues by type for 2022 (Search & other $162,450m, YouTube ads $29,243m, Google Network $32,780m, Google subscriptions, platforms, and devices $29,055m, Google Cloud $26,280m, Other Bets $1,068m) and recast segment operating income for 2022 (Google Cloud $(1,922)m, Other Bets $(4,636)m); Google DeepMind reported within Alphabet-level activities from the second quarter of 2023 — FY2022–FY2023 · publ. January 31, 2024 · source ↗
  12. ReportedThen came $4,444 million in 2024 and $7,515 million in 2025.
    Alphabet Form 10-K, FY2025 — segment note and MD&A: operating income Google Services $95,858m / $121,263m / $139,404m on revenue of $272,543m / $304,930m / $342,721m; Google Cloud $1,716m / $6,112m / $13,910m, with employee compensation $19,054m / $20,519m / $22,078m and other costs $12,318m / $16,598m / $22,717m; Other Bets $(4,095)m / $(4,444)m / $(7,515)m; Alphabet-level activities $(9,186)m / $(10,541)m / $(16,760)m, primarily shared AI research and development (2023 / 2024 / 2025) — FY2023–FY2025 · publ. February 5, 2026 · source ↗
  13. Moat Explorer calcAcross the six years that is more than $30 billion, spent on businesses whose combined revenue in the latest year was about a seventh of a single quarter of YouTube's advertising.
    Moat Explorer calculation from Alphabet's filed revenue and segment figures (Forms 10-K FY2019, FY2021, FY2022, FY2023, FY2025; Q1 and Q2 2026 releases) — growth rates, shares of revenue, compound annual growth, segment operating margins and loss-per-revenue-dollar ratios — FY2017–Q2 2026 · publ. Computed September 2026 · source ↗
  14. ReportedAcross the six years that is more than $30 billion, spent on businesses whose combined revenue in the latest year was about a seventh of a single quarter of YouTube's advertising.
    Alphabet Q2 2026 earnings release — quarter ended June 30, 2026 against 2025: Search & other $63,271m vs $54,190m; YouTube ads $11,055m vs $9,796m; Google Network $7,303m vs $7,354m; subscriptions, platforms, and devices $12,911m vs $11,203m; Google Cloud $24,768m vs $13,624m (+82%) with operating income $8,814m vs $2,826m; Google Services operating income $39,544m on $94,540m; Other Bets revenue $382m vs $373m and operating loss $(1,799)m vs $(1,246)m — Q2 2026 · publ. July 22, 2026 · source ↗
  15. ReportedThe filing says the larger loss was "primarily driven by an increase in employee compensation expenses largely due to an increase in a valuation-based compensation charge related to Waymo".
    Alphabet Form 10-K, FY2025 — Item 7 MD&A, revenue discussion: Search & other +$26.4 billion; YouTube ads +$4.2 billion, driven by direct response then brand advertising; Google Network −$567 million on lower AdSense, partly offset by AdMob; paid clicks +6%, cost-per-click +7%, Network impressions −7%, cost-per-impression +7%; subscriptions, platforms, and devices +$7.7 billion on paid subscriptions across YouTube services and Google One; Google Cloud +$15.5 billion on Google Cloud Platform infrastructure and platform services; Other Bets operating loss +$3.1 billion on a valuation-based compensation charge related to Waymo; cost of revenues up on TAC, content acquisition costs and depreciation — FY2025 against FY2024 · publ. February 5, 2026 · source ↗
  16. ReportedAlphabet led a $5.6 billion investment round in Waymo in October 2024, and in February 2026 Waymo announced a $16 billion round that valued it at $126 billion and brought in several new investors.
    Waymo — $5.6B investment round led by Alphabet (Oct 2024), reported ~$45B valuation — Oct 2024 · publ. Oct 25, 2024 · source ↗
  17. ReportedAlphabet led a $5.6 billion investment round in Waymo in October 2024, and in February 2026 Waymo announced a $16 billion round that valued it at $126 billion and brought in several new investors.
    CNBC — Waymo announces a $16 billion funding round (Feb 2026) — Feb 2026 · publ. Feb 2, 2026 · source ↗
  18. ReportedOther Bets lost $2,100 million in the first quarter on $411 million of revenue and $1,799 million in the second on $382 million, about $3.9 billion lost on $0.8 billion of revenue in six months.
    Alphabet Q1 2026 earnings release — quarter ended March 31, 2026 against 2025: Search & other $60,399m vs $50,702m; YouTube ads $9,883m vs $8,927m; Google Network $6,971m vs $7,256m; subscriptions, platforms, and devices $12,384m vs $10,379m; Google Cloud $20,028m vs $12,260m with operating income $6,598m vs $2,177m; Other Bets revenue $411m vs $450m and operating loss $(2,100)m vs $(1,226)m — Q1 2026 · publ. April 2026 · source ↗
  19. ReportedOther Bets lost $2,100 million in the first quarter on $411 million of revenue and $1,799 million in the second on $382 million, about $3.9 billion lost on $0.8 billion of revenue in six months.
    Alphabet Q2 2026 earnings release — quarter ended June 30, 2026 against 2025: Search & other $63,271m vs $54,190m; YouTube ads $11,055m vs $9,796m; Google Network $7,303m vs $7,354m; subscriptions, platforms, and devices $12,911m vs $11,203m; Google Cloud $24,768m vs $13,624m (+82%) with operating income $8,814m vs $2,826m; Google Services operating income $39,544m on $94,540m; Other Bets revenue $382m vs $373m and operating loss $(1,799)m vs $(1,246)m — Q2 2026 · publ. July 22, 2026 · source ↗
  20. Moat Explorer calcOther Bets lost $2,100 million in the first quarter on $411 million of revenue and $1,799 million in the second on $382 million, about $3.9 billion lost on $0.8 billion of revenue in six months.
    Moat Explorer calculation from Alphabet's filed revenue and segment figures (Forms 10-K FY2019, FY2021, FY2022, FY2023, FY2025; Q1 and Q2 2026 releases) — growth rates, shares of revenue, compound annual growth, segment operating margins and loss-per-revenue-dollar ratios — FY2017–Q2 2026 · publ. Computed September 2026 · source ↗
  21. Moat Explorer calcIt went from $2.68 in 2023 and $2.70 in 2024 to $4.89 in 2025.
    Moat Explorer calculation from Alphabet's filed revenue and segment figures (Forms 10-K FY2019, FY2021, FY2022, FY2023, FY2025; Q1 and Q2 2026 releases) — growth rates, shares of revenue, compound annual growth, segment operating margins and loss-per-revenue-dollar ratios — FY2017–Q2 2026 · publ. Computed September 2026 · source ↗
Sources
Generated September 16, 2026