Google justifies its massive AI spending with a booming cloud business
TechCrunch AI Lucas Ropek ● Covered by 14 sources
Google's cloud business revenue surged 82% year-over-year to $24.8 billion in the latest quarter, driven largely by enterprise AI adoption, demonstrating returns on the company's substantial AI infrastructure spending. The company reported a backlog of $514 billion in cloud contracting work and profit jumped from $28.1 billion to $112.1 billion compared to the prior year. These results suggest Google's multibillion-dollar AI investments are beginning to generate significant revenue and profitability, though the company continues heavy capital spending of $180–190 billion annually for data centers and chips.
Why it matters
Google's cloud business is thriving, as companies adopting its AI and AI infrastructure services help the tech giant to report record profits.
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