Sundar Pichai Reported Alphabet's Cloud Revenue Grew 82% Last Quarter While the Gemini App Reached 950 Million Monthly Users. Is Google Cloud Becoming a Bigger Growth Driver Than Search?

• Google Cloud revenue grew 82% YoY to $24.8B, adding more incremental revenue than Search for the first time. • Google Search hit record revenue ($63.3B) despite rising AI chatbot competition from ChatGPT, Claude, and Gemini. • Cloud's AI-driven growth could offset future Search declines if chatbots erode ad revenue. Alphabet faces both the biggest opportunity and the biggest threat from AI. Google Search posted record revenue last quarter, but Google Cloud is growing far faster, up 82% year over year to $24.8 billion, versus $13.6 billion a year earlier. Search revenue rose a slower 17% to $63.3 billion. In dollar terms, Cloud added $11.2 billion in new revenue compared with $9.1 billion for Search, making Cloud officially the bigger growth driver for the first time. The risk: ChatGPT, Claude, and Alphabet's own Gemini (950 million monthly users) could erode Search ad volumes. But Gemini's AI infrastructure already underlies Search's AI summaries, and any Search weakness from AI disruption would likely translate into more demand for Google Cloud's data center services, giving Alphabet a hedge either way.