Google Cloud Hits $10Bn Milestone

Google Cloud has hit a 📊 significant milestone, reaching $10.35 billion in revenue, driven by strong demand for AI, and surpassing Wall Street forecasts. It crossed the $10 Bn quarterly revenues mark for the first time.

Sundar Pichai, Google CEO just shared that he is “really pleased with results this quarter”, which showed “great progress in Cloud with our AI initiatives driving new growth”.

🥇 In Q2, Google Cloud achieved several major milestones

Quarterly revenues surpassed $10 billion for the first time, while at the same time quarterly operating profit passed $1Bn, reaching $1.2 billion.

Google Cloud revenues grew 29% reflecting significant growth in GCP.

📈 Google is betting big on AI and it’s paying off

Google CEO highlighted that “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 2 million developers.”

CFO Ruth Porat also stressed that the company was particularly encouraged that "the majority of our top 100 customers are already using our generative AI solutions," and that Alphabet continues to invest aggressively in the business.

🤝 Google is actively engaging with customers around AI

CFO highlighted that GCP team is actively involved with customers and it's one of the reasons why Google Cloud is growing ahead of overall cloud market.

“There is clearly a benefit as the Cloud team is engaging broadly with customers around the globe with AI related solutions, AI infrastructure solutions and the generative-AI solutions.

I think we noted that we're particularly encouraged that the majority of our top 100 customers are already using our generative AI solution.

So it is clearly adding to strength of the business on top of all that they are doing. And just to be really clear, the results for GCP, the growth rate for GCP is above the growth for cloud overall.”

💡 The takeaway is clear:

AI is not just an add-on; it’s now a core component of the cloud value proposition and a growth multiplier.

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