Google Cloud, owned by Alphabet, generated more than $20 billion in revenue in the first quarter for the first time in its history. This is a 63 percent increase compared to the same period last year. Techcrunch.com reports on this.
This was driven by high demand for artificial intelligence solutions.
In the first quarter of 2026, the growth of cloud services was primarily driven by the Google Cloud Platform. Alphabet CEO Sundar Pichai noted that this growth is linked to the demand for Gemini Enterprise and other artificial intelligence tools.
Additionally, the need for TPU hardware and data centers has increased.
Artificial intelligence solutions became the main driver of cloud services growth. Products created based on Google's generative models grew by nearly 800 percent on an annual basis.
The growth of artificial intelligence tokens via API reached up to 16 billion per minute.
Pichai noted that the attraction of new customers and the number of large contracts have doubled. The company has signed several billion-dollar agreements.
Customers exceeded their initial commitments by 45 percent.
However, the executive warned that there are certain limitations to this growth. Google Cloud's backlog doubled during the quarter, reaching $462 billion.
Pichai assessed this as a positive situation for the company.
«We are facing constraints in computing capacity in the short term. If we had been able to fully meet the demand, our revenue would have been even higher», — said Pichai.
The company plans to process 50 percent of the backlog within the next 24 months.
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