AI turned Google Cloud from also-ran into Alphabet’s growth driver


People walk next to the Google Cloud logo, during the 2025 Mobile World Congress (MWC) in Barcelona, Spain, March 4, 2025. REUTERS/Albert Gea

NEW YORK, NY (Reuters) -Once a money-losing backwater, Google Cloud has become one of Alphabet's fastest-growing businesses, powered by massive bets on AI and years of costly investment in datacenters, custom chips, and networking gear.

Alphabet’s cloud revenue topped $15 billion in the third quarter, a 34% increase reflecting strong demand for AI infrastructure and services, including Google’s own Gemini model, the company announced Wednesday.

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