Cloud

““Obviously, Google has tremendous AI capabilities both in terms of infrastructure and research, and generative AI is a sustaining innovation for its display advertising business and its cloud business.””

“Except it hasn’t worked out that way — at least not yet. Google today is thriving. It’s turned in double-digit percentage sales growth this year and hasn’t given up its dominant lead in search. Its cloud business just hit $10 billion in quarterly revenue for the first time, partly thanks to a surge in generative AI interest. Over the past year, it’s been a better investment than Microsoft, the consensus AI leader. Google’s stock is up 37% across the past twelve months against Microsoft’s 19%, and it leads Microsoft 21% to 12% year to date. Generative AI technology, meanwhile, is boosting Google’s cloud services unit as enterprises try to unlock its value. But so far, Google’s made it through the first generative AI wave with far less damage than anticipated. And now it may be moving forward from a position of strength.”