Google Cloud Doubles, Stock Sinks

Google Cloud just doubled its revenue year over year, hitting $30.7 billion in Q3 2026, and CEO Sundar Pichai says their AI models now process a staggering 32 billion tokens per minute. Yet, beneath the headline growth is a cash crunch: Alphabet’s free cash flow came in negative for the second straight quarter, capex is at a record high, and the stock tumbled as investors questioned whether booming cloud demand can really offset rising costs and softer ad revenue. The stakes couldn’t be higher—Google’s AI ambitions are colliding with the realities of margin pressure and an uncertain path to monetizing massive investments.

But here’s the catch: Google is pushing its custom TPUs (AI chips) out to more partners—including a game-changing deal with Oracle that lets rivals run Google’s secret sauce on their own clouds. That could expand Google’s reach but also erode the exclusive edge it’s been building. Meanwhile, new agentic AI integrations with ServiceNow and advances in robotics hint at the next wave of enterprise workloads, but questions remain about efficiency, cost, and whether clients will see hard ROI before the bills catch up.

Featuring insights from CEO Sundar Pichai, CFO Anat Ashkenazi, and Cloud chief Thomas Kurian, plus reporting from Fortune and The Information.

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