Google justifies its massive AI spending with a booming cloud business

Alphabet's latest earnings report shows that Google's cloud business is booming, with revenue surging 82% year-over-year to $24.8 billion, largely driven by enterprise AI adoption and infrastructure. This strong performance, alongside a massive jump in overall profit to $112.1 billion and 950 million monthly active users for the Gemini chatbot, helps justify the company's heavy AI investments. Despite ongoing questions from analysts about capital expenditures—projected between $180 billion and $190 billion for the year—CEO Sundar Pichai expressed confidence, pointing to a growing cloud contract backlog of $514 billion and strong long-term demand indicators.

(Source：TechCrunch)