Business News | Google Cloud Revenue Jumps 82% in Q2 on Strong AI Demand; Gemini Enterprise Used by 90% of Fortune 100: Pichai
Get latest articles and stories on Business at LatestLY. Google's cloud business grew by a robust 82 per cent in the Q2 driven by strong AI-led demand and increasing adoption of Gemini Enterprise, which is now used by nearly 90 per cent of Fortune 100 companies, said Google CEO Sundar Pichai.
New Delhi [India], July 23 (ANI): Google's cloud business grew by a robust 82 per cent in the Q2 driven by strong AI-led demand and increasing adoption of Gemini Enterprise, which is now used by nearly 90 per cent of Fortune 100 companies, said Google CEO Sundar Pichai.
Alphabet Inc., Google's parent company, reported a 24 per cent year-on-year increase in revenue in the second quarter, with total revenue rising to USD 119.8 billion from USD 96.43 billion a year earlier, as per an exchange filing.
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"Consolidated Alphabet revenues increased 24%, or 23% in constant currency, to $119.8 billion, reflecting strong performance across the business and our 12th consecutive quarter of double-digit revenue growth," the release noted.
As per the filing, Google Services revenue rose 15 per cent to USD 94.5 billion, supported by 17 per cent growth in Google Search and other businesses, a 15 per cent increase in subscriptions, platforms and devices, and 13 per cent growth in YouTube advertising revenue.
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Additionally, Google Cloud delivered a significant acceleration, with revenue surging 82 per cent to USD 24.8 billion. The growth was driven by higher demand for Google Cloud Platform (GCP), particularly enterprise AI solutions and infrastructure, along with continued growth in core GCP services.
At the consolidated level, Alphabet's operating income increased 30 per cent, while its operating margin expanded by two percentage points to 34 per cent.
Other income reflected a net gain of USD 98 billion, primarily due to net unrealised gains on the company's equity investments.Commenting on the growth, Pichai said, "Our AI investments are redefining what's possible across every part of our business."
He further noted, Google's model APIs are processing "22B tokens/min (up from 16B+ last quarter) driven by our workhorse Flash models."
"We're also seeing great adoption of Gemini Enterprise, used by 90% of the Fortune 100, as well as strong demand for our security solutions," he noted.
Earlier, in a separate development, Alphabet increased the size of its equity offerings to USD 84.75 billion to expand its AI infrastructure and computing capacity. (ANI)
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