00:00But similarly, on Google, Alphabet topped Wall Street estimates for quarterly cloud revenue growth on Wednesday
00:05as the Google parent benefited from strong demand for its cloud computing services from enterprises worldwide thanks to the AI
00:13boom.
00:13Revenue at Google Cloud rose 82% to $24.8 billion during the quarter ended June, accelerating from the 63
00:21% jump reported in the preceding three months.
00:27Analysts on average expected a 64% increase according to data compiled by LSEG.
00:34Shares of the company were down more than 1% in extended trading.
00:38Seven years into our journey as an AI-first company, we are at an exciting inflection point.
00:45We have an opportunity to make AI even more helpful for people, for businesses, for communities, for everyone.
00:56We have been applying AI to make our products radically more helpful for a while.
01:01Making AI helpful for everyone is the most profound way we will advance our mission.
01:06As the third largest cloud services provider behind Amazon Web Services and Microsoft, Google has seen demand surge.
01:14Companies are racing to secure the cloud capacity needed to develop, train and run AI models,
01:20which has helped Google land major deals with firms including Entropic.
01:25The robust cloud growth may ease some concerns over the company's hefty AI spending.
01:29Google has rapidly scaled up investments in data centres and advanced chips to build out its AI infrastructure.
01:36But investors have been worried whether the outlay would translate into sustainable revenue growth.
01:42Big tech is expected to spend well over $700 billion this year, primarily on AI,
01:48while Morgan Stanley has packed the estimated spend at more than $1 trillion for the next year.
01:54Alphabet shares have been among the best performers in the Magnificent 7 group of stocks this year, so far raising
02:02nearly 11%.
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