Google Cloud boosted its operating profits to $395 million for the second quarter, a improvement of close to $1 billion from its loss of $590 million in the same quarter a year ago.
The result, posted Tuesday as part of its parent company Alphabet’s quarterly earnings, followed Google Cloud’s first-ever profit of $191 million in the first quarter of this year.
Google Cloud revenue rose 28% to more than $8 billion in the second quarter.
On a conference call with analysts, Google and Alphabet CEO Sundar Pichai credited the growth to factors including the use of Google Cloud infrastructure by customers for training and delivering generative AI models. He said the demand for generative AI is “expanding our total addressable market and winning new customers.”
Alphabet’s overall revenue rose 7% to $74.6 billion, with net income of $18.4 billion and earnings per share of $1.44, as the Mountain View, Calif.-based company topped Wall Street’s expectations across the board.
Similarly, Microsoft’s cloud results helped the Redmond, Wash.-based company exceed expectations in its quarterly results, also reported Tuesday afternoon.
Amazon Web Services’ results will be issued next week as part of Amazon’s earnings report.
