Alphabet’s Cloud Backlog Just Topped $500 Billion. Is Google Cloud About to Overtake Search as the Growth Engine?
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has garnered some huge customer commitments for its cloud computing platform over the last few years. Though its revenue growth accelerated last quarter, with the top line rising 82% to nearly $25 billion, there’s much more revenue to be earned — $514 billion in cloud backlog, to be precise.
The company is spending heavily to ensure it acquires the compute capacity to fulfill all those contracts. It’s committed to spending $811 billion, mostly on AI infrastructure. In other words, management is making a big bet that the cloud business will be the company’s biggest growth engine for the foreseeable future.
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