# Google's cloud business justifies its massive AI spending Company's cloud revenue surged 82% to reach $24.8 billion. - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-07-22 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/dd0f5836-8496-404c-a0d1-ec26ea505e4d ## Investor concerns easing Alphabet investors had been worried about the returns on the company's AI investments. However, the latest quarterly report alleviated these concerns with Google Cloud revenue growing 82%. Demand for enterprise AI solutions was the primary driver behind this significant growth. ## Exceeding expectations Google Cloud's $24.8 billion revenue substantially surpassed Wall Street analysts' $22.46 billion expectation. This performance also exceeded the previous quarter's 63% growth. The company's cloud contract backlog reached $514 billion, indicating strong future revenue potential. ## Overall financial picture Alphabet's total revenue increased 24% year-over-year to $119.8 billion. The company's profit saw a massive jump from $28.1 billion to $112.1 billion compared to the same period last year. Google Services revenue also grew by 15%, showing broad-based strength across business units. ## AI product growth Google's AI chatbot Gemini now boasts 950 million monthly active users, up significantly from 750 million in Q4 2025. CEO Sundar Pichai emphasized that AI investments are transforming all parts of the business, creating what he called 'exciting momentum across the board.' ## Continued investments Alphabet's capital expenditures for data centers, chips, and infrastructure are estimated between $180-$190 billion this year. Pichai stated that computing capacity investments through 2027 are supported by strong demand indicators and long-term deals, giving the company confidence in these substantial outlays. ## Industry implications Google's performance demonstrates how major AI infrastructure investments, when properly strategized, can yield significant returns even in the short term. The cloud-AI integration has clearly emerged as a powerful growth engine, offering valuable lessons for the broader tech industry about future investment priorities. ## Sources covering this story - https://techcrunch.com/2026/07/22/google-justifies-its-massive-ai-spending-with-a-booming-cloud-business/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._