Google Cloud tops $20B on AI boom

The company’s cloud revenue was up 63% as the provider spent $35.7 billion in capital expenditures to reap AI opportunities.

Dive Brief:

• Alphabet’s AI investments and its full-stack approach are driving the company’s performance and growth as it looks ahead to agentic models, CEO Sundar Pichai said during the company’s Q1 earnings call Wednesday. The company reported a 63% increase in revenue from its cloud operations, which drive its AI products and infrastructure, exceeding $20 billion for the first time. 
• Google Cloud’s parent company spent $35.7 billion on capital expenditure in the first quarter. Much of the investment went toward technical infrastructure to increase its AI offerings, with about 60% spent on servers and 40% on data centers and networking equipment, Pichai said. 
• Pichai highlighted the importance of the company’s AI infrastructure, calling it the foundation of its full-stack approach to AI ...