Alphabet just proved that its massive AI spending spree isn't for nothing. The company's Q2 earnings show Google Cloud revenue surging 82% year-over-year to $24.8 billion — well above the ~64% analysts expected. Total Alphabet revenue hit $119.8 billion, up 24%.
Google says AI infrastructure and enterprise AI services are the main drivers. Cloud backlog (unfulfilled contracts) swelled to $514 billion, hinting at sustained demand.
Meanwhile, Google's Gemini app is seeing explosive adoption: 950 million monthly active users, with daily active users tripling from a year ago. The company's model API now processes 22 billion tokens per minute, up from 16 billion last quarter.
It's still early, but the numbers suggest Google's AI bet is starting to show real returns — not just hype.