Story perspectives

Google Cloud Targets $58 Billion Revenue Surge by 2025

9/10/2025

Summary

Story summary

Google Cloud aims to generate $58 billion in new revenue over the next two years, underscoring its importance to Alphabet.
The division has surpassed a $50 billion annual revenue run rate and holds a $106 billion backlog in contracts.
CEO Thomas Kurian expects 55% of this backlog to convert into revenue within two years.
Google Cloud experienced a 28% increase in new customers quarter-over-quarter.
Nine of the ten largest AI labs, including OpenAI and Anthropic, are now clients.

History

Historical Context

Since launching Google Cloud Platform in 2008, Google has expanded its cloud services significantly, aiming to compete with Microsoft and Amazon Web Services. In 2019, Microsoft reported $38 billion in cloud revenue, while Google set a $58 billion revenue goal for its cloud division, reflecting the tech industry's shift towards cloud computing and AI technologies, driven by clients like OpenAI.

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Story summary

Google Cloud aims to generate $58 billion in new revenue over the next two years, underscoring its importance to Alphabet.
The division has surpassed a $50 billion annual revenue run rate and holds a $106 billion backlog in contracts.
CEO Thomas Kurian expects 55% of this backlog to convert into revenue within two years.
Google Cloud experienced a 28% increase in new customers quarter-over-quarter.
Nine of the ten largest AI labs, including OpenAI and Anthropic, are now clients.

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