Google Cloud achieved $13.6 billion in revenue for the second quarter ending June 30, marking a $3.3 billion increase year-over-year. CEO Sundar Pichai noted the transformative impact of AI across the business. Capital expenditures on cloud and AI are yielding a healthy return on investment. Lee Sustar from Forrester highlighted the 32% growth in Google Cloud earnings. The operating margin doubled to 20%, demonstrating efficient growth alongside rising capital expenses. The transition to an AI-native cloud is evident in Google Cloud's performance.
"AI is positively impacting every part of the business, driving strong momentum," said Pichai.
"Google Cloud, once a sidelight in Alphabet's earnings and beset with huge losses, is now standing out as a significant earner, with a 32% jump in earnings compared to the same period a year earlier."
"Operating margin doubled to about 20%, showing that Google Cloud can grow without burning up all its revenue in vast AI investments."
"The era of the AI-native cloud is here, and it shows up in Google Cloud's numbers."
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