"During a Goldman Sachs technology conference in San Francisco, he said that the company has approximately $106 billion in contracts outstanding. According to him, more than half of that can be converted into revenue in the next two years. In the second quarter of 2025, parent company Alphabet reported $13.6 billion in revenue for Google Cloud, an increase of 32 percent over the previous year."
"Increasingly, customers are looking for suppliers who can help transform their business operations with AI applications, rather than just hosting services. Google claims to have an advantage in this regard thanks to its own investments in AI infrastructure. Its systems are said to be more energy-efficient and deliver more computing power than those of its competitors. According to Kurian, the storage and network are also designed in such a way that they can easily switch from training to inference."
"Kurian emphasized that many companies still run IT systems on-premises. He expects the transition to the cloud to accelerate, with artificial intelligence playing a decisive role. For investors, the most important thing is how AI is converted into revenue. Kurian mentioned usage-based rates, subscriptions, and value-based models, such as paying per saved service request or higher ad conversions. In addition, AI use leads to increased purchases of security and data services."
Google Cloud has approximately $106 billion in contracts outstanding, with more than half convertible into revenue within two years. In Q2 2025, Alphabet reported $13.6 billion in Google Cloud revenue, a 32% year-over-year increase. If conversion forecasts hold, Google Cloud could add $53 billion by 2027. Many companies still run IT on-premises, and migration to cloud is expected to accelerate with AI fueling demand for transformation-focused services. Google highlights energy-efficient AI infrastructure, storage and network optimized for training-to-inference switching. AI monetization models include usage-based, subscription and value-based pricing, and AI adoption increases purchases of security and data services. Sixty-five percent of customers now use Google Cloud AI tools.
Read at Techzine Global
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