Alphabet Cloud Revenue Doubles to $31 Billion as Shares Fall
· Technology · Fortune, Reuters, MarketWatch
Alphabet reported that its Google Cloud revenue more than doubled to $30.7 billion in the third quarter, offsetting slower growth in Google Search and YouTube. Total quarterly revenue reached $127.6 billion, representing a 25% increase from $102.3 billion a year earlier. Earnings per share fell to $2.12 from $2.87, driven by an $8.7 billion paper loss on equity investments. Capital spending surged to $51.4 billion compared to $24 billion in the same period last year. Alphabet CEO Sundar Pichai stated that the company is operating on a half-trillion-dollar revenue run rate.
Why it matters
The massive jump in capital spending highlights the heavy financial toll of the global artificial intelligence infrastructure race on major tech giants.
Read the original report — Fortune
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