Google Cloud revenue in the fourth quarter were $12 billion, up 30% from a year ago, amid mixed results from parent Alphabet, which said it will spend $75 billion in capital expenditures in 2025.
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.
Alphabet's Google Cloud business is now pushing a $40 billion annual revenue run rate as the company overall delivered strong first quarter results.
Google Cloud outlined a series of services and enhancements across its platform in a bid to make it easier for enterprises to bring their data to generative AI models, build applications and deploy them at scale.
Google Cloud delivered fourth quarter operating income of $864 million on revenue of $9.2 billion, up from $7.3 billion a year ago. Wall Street was expecting Google Cloud revenue of $8.94 billion.
Smartphones are increasingly about foundational models, generative AI features and the ability to leverage AI locally. The latest example is Samsung's Galaxy S24 launch, which also served as a showcase for Google's Gemini Pro and Imagen 2 on Vertex AI.
Hyperscalers are getting chippy as they compete for generative AI workloads.
Google Cloud CEO Thomas Kurian said companies are starting to reimagine their businesses for artificial intelligence one process at a time.
While generative AI dominated the talking points among the big three cloud hyperscalers--Microsoft Azure, AWS and Google Cloud--there was a term that remained a close second: Optimization.
Ruth Porat, President, Chief Investment Officer and CFO, said the company was seeing "momentum in Cloud."
