Alphabet's Google Cloud revenue rose 63% year-over-year to $20 billion, powered by AI infrastructure and models

Google Cloud revenue rose 63% year-over-year to $20 billion in the first quarter. Alphabet's AI strategy offers free versions of AI models, then charges users per token for more advanced versions, while companies use Google Cloud's custom TPUs to train and run AI models at lower cost than GPU-based training.

Google Search integrated generative AI into search overviews, turning each search into a mini AI prompt. Search revenue rose 19% year-over-year, showing the core business remains highly profitable despite predictions it would be replaced by generative AI.

Alphabet's overall revenue grew at a 22% year-over-year pace, and the article states the company 'still has years of AI-related growth ahead.'