Google Cloud revenue rose 103% year on year to $30.7B on demand for AI infrastructure, and Cloud’s operating income tripled year on year to $11.1B.
Google’s model APIs now process nearly 32B tokens per minute, more than 4x a year earlier, and the Gemini app reached 1B users.
TPU chip sales contributed meaningfully to Cloud growth, with Oracle now offering TPUs and OpenAI reportedly buying them, though Google expects most TPU revenue only in 2027.
AI data center spending left free cash flow negative by more than $9B, deeper than the previous quarter’s $5.9B deficit, while shared AI research costs rose 71% year on year to $7.7B.