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yesterday

Google Cloud Says Over Half of $106 Billion Backlog Will Turn Into Revenue Within Two Years

Management ties the outlook to AI-heavy workloads, rapid customer growth, heightened capex.

People walk next to the Google Cloud logo, during the 2025 Mobile World Congress (MWC) in Barcelona, Spain, March 4, 2025. REUTERS/Albert Gea/File Photo
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Overview

  • CEO Thomas Kurian said roughly 55% of a $106 billion backlog should convert to revenue within two years, implying about $58 billion and excluding future contracts.
  • The backlog is growing faster than reported revenue, and new customer wins rose 28% quarter over quarter in the first half of 2025.
  • Google Cloud has surpassed a $50 billion annual run rate, with Q2 revenue of $13.62 billion, up 32% from a year earlier.
  • Nine of the ten largest AI labs now use Google Cloud, including OpenAI and Anthropic, according to Kurian.
  • Kurian outlined AI monetization via consumption pricing, subscriptions, upselling, and value-based pricing, as Alphabet raised 2025 capex to $85 billion to expand AI infrastructure.