Latest development3 months ago
Alphabet Cloud Revenue Surges 82% as Contract Backlog Hits $514 Billion
Alphabet's cloud division recorded 82% revenue growth supported by a massive $514 billion backlog in contracted services.
Read the full story
Alphabet's CFO stated that demand for AI services continues to outpace current infrastructure capacity. While shares of Tesla and Alphabet fell following signals of increased AI spending, Google's cloud revenue surged 82% year-on-year in the second quarter. These results suggest that the company's heavy investments in artificial intelligence are beginning to pay off.
Alphabet's cloud division recorded 82% revenue growth supported by a massive $514 billion backlog in contracted services.
Read the full storyAlphabet's free cash flow turned negative in Q2 as capital expenditures surged to $44.9 billion, despite a robust 30% growth in operating income.
Record capital expenditures of $44.9B for AI infrastructure pushed Alphabet's free cash flow into negative territory for the first time in two decades.
Shares fell in premarket trading as investors reacted to rising capital expenditure for AI development despite strong cloud growth.
Alphabet's CFO highlighted that surging demand for AI services continues to outpace the company's current infrastructure capacity.