Google Cloud quarterly revenue up 103% year-over-year to $30.7 billion
Google Cloud revenue grew 103% year-over-year to $30.7 billion, while cloud business operating income more than tripled to $11.1 billion, driven mainly by demand for AI infrastructure. Google's model APIs currently process nearly 32 billion tokens per minute, more than 4 times the level a year ago, and the Gemini app has reached 1 billion users. TPU chip sales are making a substantive contribution to cloud growth; Oracle has begun offering TPUs, and OpenAI is reportedly also purchasing them, but Google expects most TPU revenue to materialize only by 2027; AI data center spending pushed free cash flow to a negative of more than $9 billion, wider than last quarter's $5.9 billion shortfall, while shared AI research costs rose 71% year-over-year to $7.7 billion.
Why read this
AI score 68
The earnings figures simultaneously show revenue growth in the cloud business and AI infrastructure alongside capital expenditure pressure, offering a way to gauge the return cadence on AI investment.
Topics
Body
> Google Cloud revenue rose 103% year on year to $30.7B on demand for AI infrastructure, and Cloud’s operating income tripled year on year to $11.1B.
> Google’s model APIs now process nearly 32B tokens per minute, more than 4x a year earlier, and the Gemini app reached 1B users.
> TPU chip sales contributed meaningfully to Cloud growth, with Oracle now offering TPUs and OpenAI reportedly buying them, though Google expects most TPU revenue only in 2027.
> AI data center spending left free cash flow negative by more than $9B, deeper than the previous quarter’s $5.9B deficit, while shared AI research costs rose 71% year on year to $7.7B.