Alphabet reported third-quarter revenue of $127.6bn on 28 October, up 25% on a year earlier, with Google Cloud revenue more than doubling to $30.7bn. Chief executive Sundar Pichai said cloud growth was “powered by huge demand for our AI infrastructure and AI solutions” and that the company is now on a half-trillion dollar revenue run rate.
On the earnings call, Alphabet said the Gemini app has reached 1 billion users and that its own model APIs now process nearly 32 billion tokens a minute. Google Cloud’s backlog of contracted future revenue stood at $561bn, and nearly 100 customers use its TPU chips, the company said.
The bill keeps growing. Alphabet kept its 2026 capital spending forecast of $195bn to $205bn and said it expects spending to “increase significantly in 2027”, with details due on its next call. Net income was $26.5bn, reduced by an $8.7bn loss on equity holdings.
Why it matters: cloud revenue is one of the more direct measures of whether businesses are paying for AI rather than just testing it, and Alphabet’s spending plans show how costly the race for computing capacity remains. Read Alphabet’s results release.