Google cloud generated over $26 billion in revenue in 2022. The Google cloud segment is a critical component of Google’s business model.
Indeed Google cloud plays a key role in the development of the AI industry, as it works as the underlying infrastructure to power up large language models.
For some context, while Google Cloud is among the three giants of cloud, as of today, it’s a smaller cloud player compared to AWS and Microsoft.
Yet, it’s critical to highlight that Google Cloud infrastructure is the primary growth driver for Google Search and its suite of online applications (Google Docs) used by millions worldwide.
Indeed, the cloud infrastructure is a critical competitive moat for Google, which has been leveraging it to optimize the whole company around AI.
Indeed, Google’s research team developed the architecture that has powered today’s large language models (like ChatGPT).
In recent years, Google Cloud has optimized its infrastructure to run AI models through its processor called TPU.
Google’s AI supercomputer, comprised of thousands of TPUs, is the core of the current AI paradigm, helping Google integrate AI into any product.
The Cloud infrastructure is also monetized via APIs, which enables developers to integrate Google’s LLM infrastructure into any web application.
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