Google justifies higher AI spending as cloud business surges

Friends, here is a noteworthy update from the AI and cloud market.

Alphabet’s latest report shows Google Cloud revenue up 82% year over year to $24.8 billion.

The growth was driven by enterprise AI solutions and infrastructure. Cloud backlog reached $514 billion.

Alphabet’s total quarterly revenue rose 24% to $119.8 billion, while profit increased to $112.1 billion.

Gemini also stands out: the chatbot now has 950 million monthly users.

Why it matters: the market is seeing that major AI investments are starting to translate into real revenue, not just expenses.