Google Cloud revenue for the second quarter was better-than-expected at $10.35 billion, up from $8.03 billion a year ago. Analysts were modeling $10.2 billion for Google Cloud revenue.

It was the first quarter where Google Cloud topped operating income of $1 billion. Google Cloud reported second quarter operating income of $1.17 billion.

Alphabet, parent of Google, reported second quarter earnings of $18.37 billion, or $1.89 a share, on revenue of $84.74 billion, up 14% from a year ago. Wall Street was looking for second quarter earnings of $1.84 a share on revenue of $84.19 billion.

Analysts were expecting Google to report second quarter earnings of $1.84 a share on revenue of $84.26 billion.

Google’s second quarter earnings landed as the company’s plans to buy Wiz and HubSpot fell apart. Google has gone shopping in recent months to bulk up Google Cloud. Google Cloud also forged a pact with Oracle.

Speaking on an earnings conference call, Pichai said Nvidia's latest platform will be coming to Google Cloud. "We continue to invest in designing and building robust and efficient infrastructure to support our efforts in AI given the many opportunities we see ahead," said Pichai.

He added that Google is also looking to drive efficiency in its AI models and matching "the right model size to the complexity of the query to minimize the impact on costs and latency."

For Google Cloud, the Oracle partnership can embed its AI services into more enterprises. Customer references cited by Google Cloud for AI adoption include Bayer, Best Buy, Discover Financial and TD Bank to name a few. Also see what Equifax and Wayfair have done with Google Cloud.

 

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