Google Cloud grows 82% to $24.8 billion, outpacing Search's revenue growth

Alphabet has been trying to steer its business toward AI head-on as chatbots like ChatGPT and Claude raise the question of whether Google Search's advertising model could be eroded. Yet Search revenue still reached an all-time high last quarter and rose 17% year over year, showing no signs of slowing. The Cloud surge described here sits alongside that strength rather than replacing it, and Alphabet's overall revenue grew 23% year over year last quarter.

Gemini's AI infrastructure now underlies all of Alphabet's services, including AI summaries in Search, which blurs any simple comparison between chatbots and traditional search. If AI usage does eventually hit Search revenue, the same boom would likely mean more demand for Google Cloud's data center services. For now, the numbers show Cloud adding more dollars than Search, a shift in where Alphabet's growth is coming from.