Google is again making much more profit with Google Cloud

The profit that Google parent company Alphabet makes with Google Cloud has doubled in the past quarter. That profit was $395 million, compared to $195 million earlier this year. Alphabet’s turnover and profit rose more than expected in almost all cases.

Alphabet earned around $395 million from Google Cloud in the second quarter of 2023, the company writes in its quarterly earnings report. In the same period last year, the company lost $590 million. This means that the profit increase continues; In the previous quarter, Google Cloud made a profit for the first time in fifteen years.

This was partly due to the fact that Alphabet removed certain cost items related to developer tools from the Cloud department and placed them under Services. That is no longer the only reason why turnover and profit are increasing. Google says Cloud is building ‘momentum’. Although the company does not mention a specific reason for this, it is obvious that the interest in artificial intelligence contributes to this. Such services increasingly use cloud services; Amazon and Microsoft are also earning more from their respective cloud services AWS and Azure due to the increase in the popularity of AI applications.

Alphabet’s results for the entire quarter were in almost all cases higher than in the same period last year. Search revenue increased from $40.7 billion to $42.6 billion. At YouTube, revenue rose from $7.3 billion to $7.6 billion. The company’s total turnover increased from 69.685 billion to 74.604 billion dollars.