April 29 (Reuters) – Alphabet topped Wall Street estimates for quarterly revenue growth at its cloud computing unit on Wednesday, driven by sustained enterprise spending on artificial-intelligence infrastructure.<\/p>\n
Shares of the \u200ccompany were up about 4% in extended trading.<\/p>\n
Alphabet’s total revenue rose 22% to $109.9 billion in the \u200cfirst quarter, compared with an estimate of $107.2 billion, according to LSEG data.<\/p>\n
Revenue at Google Cloud grew 63% to $20 billion in the \u200bfirst quarter ended March, compared with analysts’ average estimate of a 50.1% increase, according to data compiled by LSEG.<\/p>\n
The cloud unit’s backlog nearly doubled quarter on quarter to over $460 billion, the company said.<\/p>\n
The third-largest cloud services provider globally, behind Amazon Web Services and Microsoft’s Azure, has continued to land major deals, including expanded AI infrastructure \u200cpartnerships with Meta and cybersecurity firm \u2060Palo Alto Networks.<\/p>\n
The results underscore Alphabet’s position as a key beneficiary of a global surge in spending on artificial intelligence, even as investors remain watchful of whether \u2060massive outlays on infrastructure will translate into sustained growth and market share gains.<\/p>\n
Strong demand for cloud-based AI services continues to outstrip supply across the industry, pushing hyperscalers to accelerate investments in data centers, advanced chips and networking equipment.<\/p>\n
Alphabet, \u200bMicrosoft, \u200bAmazon and Meta are expected to collectively spend well \u200bover $600 billion this year to expand AI capacity, \u200cas competition intensifies and companies race to secure computing power.<\/p>\n
Google Cloud’s performance comes at a time when rivals have delivered mixed signals on growth, helping ease concerns about potential market share losses for Alphabet in the highly competitive cloud market.<\/p>\n
At the same time, capacity constraints remain a bottleneck across the sector, limiting providers’ ability to fully capitalize on AI-driven demand despite aggressive spending plans.<\/p>\n
Alphabet has also gained traction in its \u200cin-house AI efforts. Its Gemini models, including newer iterations \u200brolled out this year, have seen rising adoption across enterprise and \u200bconsumer applications, strengthening the company’s position in \u200bthe AI race.<\/p>\n
A partnership to power Apple’s artificial intelligence features, including upgrades to Siri, \u200cis expected to significantly expand Google’s reach \u200bacross a vast global device \u200bbase.<\/p>\n
Alphabet shares have outperformed most Big Tech peers over the past year, supported by growing signs that AI integration is lifting its core search and advertising businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"April 29 (Reuters) – Alphabet topped Wall Street estimates for quarterly revenue growth at its cloud computing unit…\n","protected":false},"author":2,"featured_media":22052,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[6744,1483,3013,25,425,39,2194,3303],"class_list":{"0":"post-22051","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agi","8":"tag-agi","9":"tag-alphabet","10":"tag-artificial-general-intelligence","11":"tag-artificial-intelligence","12":"tag-cloud-computing","13":"tag-data-centers","14":"tag-google-cloud","15":"tag-revenue-growth"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/22051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=22051"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/22051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/22052"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=22051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=22051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=22051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}