Alphabet’s Google Cloud locks in $58B revenue pipeline

Google Cloud by Alphabet said it had lined up a new revenue stream to generate $58 billion over the next two ￰0￱ disclosure was made at the Goldman Sachs Communacopia + Technology Conference and highlighted the division’s growing importance to Alphabet’s overall ￰1￱ cloud unit has been seeking to establish itself as one of the fastest-growing businesses within Alphabet as the company’s traditional search engine and advertising business faces growing scrutiny from regulators and ￰2￱ Cloud currently holds a $106 billion backlog in ￰3￱ Thomas Kurian said about 55% of this, roughly $58 billion, will be converted into revenue within two ￰4￱ total includes only projects currently under contract, so any new deals have the potential to keep bumping up the ￰5￱ backlog has resumed growing faster than revenue recognized, demonstrating strong ￰6￱ this year, the cloud division had already crossed a $50 billion annual revenue run ￰7￱ achievement also solidifies that Google Cloud is becoming a dependable and growing revenue stream for Alphabet, particularly as the company still scales its ￰8￱ giants drive Cloud growth Customer momentum has become one of Google Cloud’s most powerful ￰9￱ unit saw a 28% increase in new customers in the latest quarter, indicating how much businesses rely on Google for their computing ￰10￱ importantly, we see more and more in the artificial intelligence community choosing Google ￰11￱ of the world’s 10 biggest AI labs are now ￰12￱ list includes OpenAI, the creator of ChatGPT, and Anthropic, which has recently been valued at $183 ￰13￱ are direct rivals to Google’s AI platforms but rely heavily on Google Cloud to train and serve their ￰14￱ reason is ￰15￱ giant AI systems requires vast computing power, speedy networking, and secure ￰16￱ Cloud has distinguished itself in these domains by providing dedicated chips, like Tensor Processing Units (TPUs), and state-of-the-art GPU clusters for accelerating AI ￰17￱ are not just nice-to-have features for many AI labs; they are ￰18￱ emphasised at the Goldman Sachs conference that the AI surge of clients wasn’t some fad.

Instead, it represents a structural change in how the next generation of tech companies will ￰19￱ businesses in sectors ranging from healthcare to financial services to media and logistics adopt generative AI en masse, the need for robust, high-performance infrastructure can only ￰20￱ the likes of OpenAI and Anthropic, Google Cloud also sends a message to investors and customers: it is not only competing in AI but also strengthening the broader ￰21￱ two-part role strengthens Google’s business as a player in and provider to the growing AI ￰22￱ extent to which AI leaders adopt such tools illustrates a deeper ￰23￱ Cloud is becoming a supporting business line and a foundation for some of the most resource-intensive projects on ￰24￱ reinforces the company’s aspirations to be considered an advertising giant and a critical provider of 21st-century infrastructure for artificial ￰25￱ reported by Cryptopolitan , Google Cloud recently revealed that its L1 blockchain project, Google Cloud Universal Ledger (GCUL), is currently operating in a private testnet ￰26￱ Widmann, head of Web3 strategy at Google, explained that GCUL is the culmination of years of research and development in distributed ledger ￰27￱ confirmed that GCUL supports Python-based smart contracts and emphasized that the blockchain is being designed as a neutral platform for multiple financial ￰28￱ also highlighted that, while similar in scope to companies like Stripe and Circle, GCUL offers unique features that set it ￰29￱ drives Alphabet’s future growth The cloud business is emerging as an important driver of growth for ￰30￱ services represented only 14 percent of Alphabet’s total revenue in the latest quarter, but the unit is one of the company’s fastest-growing ￰31￱ contrast, Google’s advertising business is still generating the majority of revenue, even as it has come under increasing ￰32￱ in the United States and Europe are exploring Google’s dominance in search and ads, paving the way for more ￰33￱ makes diversification across Google Cloud even more critical.

Alphabet’s use of capital is a good example of this; in July, the company’s chief executive, Sundar Pichai, raised the company’s 2025 capital expenditure target to $85 billion from $75 ￰34￱ is largely fueled by increased interest in cloud services and AI ￰35￱ Cloud’s expansion comes as tech companies are pressured to prove that heavy investments in artificial intelligence will pay ￰36￱ Street has been eager to see if the billions invested in AI data centers and chips would turn into actual ￰37￱ crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites