Google continues to invest heavily in AI and it’s paying off. The cloud business takes full advantage of enterprises’ continued demand for AI technology.

Alphabet, Google’s parent company, announced its third quarter financial results last night. Nowadays the numbers are being scrutinized. As proof of whether the belief in the AI ​​hype is still justified, investors look to the quarterly reports of the tech giants and even the slightest bit of bad news quickly triggers panic reactions.

These are not necessary this quarter because Google can present rock-solid numbers. The Google Cloud industry in particular, the third largest player in the cloud industry worldwide behind AWS and Microsoft Azure, benefits fully from the AI ​​advances that the company is implementing. The cloud business grew 35 percent to $11.35 billion, exceeding all forecasts. Enterprises are once again flocking to the public cloud for access to AI technology.

Expensive gambling

Google Cloud’s excellent numbers are a big boost for the entire organization. Generative AI was literally an expensive gamble for Google. The company will also need to invest heavily in data center capacity to meet this AI need. Expenditure for the entire Alphabet Group rose to thirteen billion dollars. CEO Sundar Pichai concludes that these expenses are paying off.

Google has had a bumpy AI journey. The company was caught up in speed by OpenAI and Microsoft in 2022 and has long been in a chasing position. For the twins, the gap is gradually closing. Other goals have to give way.

The quarterly figures not only drove up Google’s share price, Microsoft and AWS also benefited. Both companies will announce their quarterly results shortly. The same trends as Google are expected.

Despite the promising numbers, Google also faces hot issues. Google has been accused of unlawfully establishing a monopoly in the search market, which could lead to the company being broken up.