--- title: "Google Cloud executives detail how to profit billions of dollars through AI products" type: "News" locale: "en" url: "https://longbridge.com/en/news/256624754.md" description: "Google Cloud CEO Thomas Kurian introduced how Google has made billions of dollars in profit through artificial intelligence services at the Goldman Sachs Communication and Technology Conference. He stated that customer demand for Google Cloud is growing rapidly, with a backlog of orders reaching $106 billion, and it is expected that more than 50% will convert to revenue in the next two years. In the second quarter, Google Cloud's revenue was $13.62 billion, a year-on-year increase of 32%. Kurian also mentioned that customers use AI infrastructure through token payments and pay based on commercial value" datetime: "2025-09-09T20:40:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/256624754.md) - [en](https://longbridge.com/en/news/256624754.md) - [zh-HK](https://longbridge.com/zh-HK/news/256624754.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/256624754.md) | [繁體中文](https://longbridge.com/zh-HK/news/256624754.md) # Google Cloud executives detail how to profit billions of dollars through AI products Google Cloud CEO Thomas Kurian explained on Tuesday how the tech giant is monetizing its various artificial intelligence services to generate revenue. Kurian stated at the Goldman Sachs Communacopia and Technology Conference in San Francisco, "We have made billions of dollars through AI." He noted that the growth rate of customer demand backlog for Google Cloud is outpacing its revenue growth. He said, "Our backlog now stands at $106 billion, growing faster than our revenue." "More than 50% of that will convert to revenue in the next two years." In the recent second quarter, Google’s parent company Alphabet reported cloud computing revenue of $13.62 billion in July, a 32% increase from the same period last year. Alphabet's net income rose to $28.2 billion, nearly a 20% increase from the previous year. Although Google’s cloud computing division lags behind Microsoft and Amazon's cloud divisions, its growth rate is faster than theirs. Here are Kurian's insights on how Google Cloud profits from AI: Kurian mentioned that some individuals have paid $10 billion through consumption, citing enterprise customers purchasing AI infrastructure as an example. He said, "Whether it's GPU, TPU, or models, you pay through tokens—this means you pay based on what you use." Tokens represent the blocks of text processed by AI models when generating or interpreting language. Some customers pay based on what Kurian referred to as "diversion rates" for customer service systems. This rate is priced based on the business value received by customers—such as uptime, scalability, AI capabilities, and security. Google Cloud also offers tools like "diversion dashboards" that customers can use to track and manage agent interactions. Last month, Google won a $10 billion cloud computing contract from Meta over six years. Meta largely relies on Amazon Web Services for cloud infrastructure, although it also uses Microsoft Azure. Some customers pay for cloud services through subscriptions. Kurian said, "You pay per user per month—like agents or workspaces." He referred to the company's Gemini product, which has its own subscription tier with various storage options, and Google Workspace productivity suite also has several subscription tiers. Google One is a popular personal cloud storage subscription service that offers basic service for $1.99 per month. Earlier this year, the company launched a new subscription tier called "Google AI Ultra," which provides exclusive access to the company's most "cutting-edge" AI products, with 30TB of storage, charging $249.99 per month Kurian cited the example of Google Cloud's cybersecurity subscription tier, saying, "We have seen tremendous growth in this area." Kurian stated that upselling is another key aspect of Google Cloud's strategy. Kurian said, "Because we have higher quality models and higher-priced tiers, people are using more from one version to another, and we will also upsell them." He mentioned that once customers use Google's AI services, they will ultimately use the company's products more. He added, "This leads to customers who sign commitments or contracts spending more than they initially engaged with, thereby driving more revenue growth." Kurian noted that it is also attracting new customers more quickly. Kurian stated, "In the first half of this year, our number of new customers grew by 28% quarter-over-quarter." He added that nearly two-thirds of customers have meaningfully used Google Cloud's AI tools. Kurian said, "Selling to existing customers is always easier than selling to new customers, so this helps us reduce sales costs." ### Related Stocks - [Alphabet Inc. (GOOG.US)](https://longbridge.com/en/quote/GOOG.US.md) - [Alphabet Inc. (GOOGL.US)](https://longbridge.com/en/quote/GOOGL.US.md) - [Direxion Daily GOOGL Bear 1X ETF (GGLS.US)](https://longbridge.com/en/quote/GGLS.US.md) - [Direxion Daily GOOGL Bull 2X Shares (GGLL.US)](https://longbridge.com/en/quote/GGLL.US.md) ## Related News & Research - [Acropolis Investment Management LLC Sells 1,995 Shares of Alphabet Inc. $GOOGL](https://longbridge.com/en/news/281676919.md) - [J. 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