Google Cloud Q1 Hits $20B

Google Cloud just hit a new milestone: $20 billion in quarterly revenue, making up nearly a fifth of parent company Alphabet’s business. Growth is white-hot, with AI products up 800% year over year and tokens processed skyrocketing. But there’s a catch—demand is outpacing Google’s compute capacity, forcing the company to prioritize billion-dollar deals and long-running workloads while it races to ramp up its infrastructure. The backlog now sits at $462 billion, and how quickly Google can turn that into delivered projects will shape whether it pulls ahead or falls behind in the cloud arms race.

But scale isn't enough. The real battle is over who controls the AI “entry points”—the orchestration layers where businesses build and run their AI agents. Google is pushing its Gemini platform, but partners like Atlassian and ServiceNow are insisting on multi-cloud flexibility, and the EU is pressuring Google to open up Android’s AI to competitors. Meanwhile, Microsoft and OpenAI have loosened their exclusivity, letting OpenAI’s products run on any cloud—including Google’s—introducing both new opportunities and fierce price competition.

Featuring insights from Fortune, VentureBeat, Business Chief, Channel Insider, and IT Pro, this episode unpacks how Google’s cloud ambitions are colliding with market constraints, partner demands, and regulatory pressures.

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