Google’s CEO Pichai On Six Key Product Areas For Business Users As Quarterly Revenue Tops $100B

‘We delivered our first ever $100 billion quarter. Five years ago, our quarterly revenue was at $50 billion. Our revenue number has doubled since then, and we are firmly in the generative AI era. In parallel, we’ve built for the long term and diversified with successful businesses in cloud, YouTube, and subscriptions. Our momentum is strong, and we are shipping at speed,’ says Alphabet and Google CEO Sundar Pichai.

For Google and its parent company Alphabet, the cloud and AI world have become resounding successes, helping drive double-digit growth across every major part of its business and giving the company its first quarter characterized by over $100 billion in revenue.

Indeed, AI has become a key driver of real business results across Google, said Sundar Pichai, CEO of Alphabet and Google, during his prepared remarks on Wednesday during Alphabet’s third fiscal quarter financial analyst conference call.

“We delivered our first ever $100 billion quarter,” Pichai said. “Five years ago, our quarterly revenue was at $50 billion. Our revenue number has doubled since then, and we are firmly in the generative AI era. In parallel, we’ve built for the long term and diversified with successful businesses in cloud, YouTube, and subscriptions. Our momentum is strong, and we are shipping at speed.”

[Related: Accenture CTO Jumps To Google Cloud To ‘Accelerate’ AI And Public Sector, CEO Says]

Google’s approach to AI spans a wide range of businesses from YouTube to Waymo autonomous driving, said Pichai.

“Our full stack approach spans AI infrastructure, world class research, including models and tooling, and our products and platforms that bring AI to people everywhere,” he said.

Among the wide range of Google offerings, several stand out for their impact on business and the channel, including:

Pichai provided updates on these and other offerings from the company. Here’s a roundup of what he talked about in his own words.

AI

We are bringing AI to more people and developers than anyone else. In July, we announced that we processed 980 trillion monthly tokens across all our services. We are now processing over 1.3 quadrillion monthly tokens, more than 20x growth in a year. Phenomenal. This quarter, we took big steps to reimagine Chrome as a browser powered by AI through deep integrations with Gemini and AI mode in search, with more agentic capabilities coming soon.

AI is driving an expansionary moment for search. As people learn what they can do with our new AI experiences, they’re increasingly coming back to search more. Search and its AI experiences are built to highlight the web, sending billions of clicks to sites every day. During the Q2 call, we shared that overall queries and commercial queries continued to grow year over year. This growth rate increased in Q3, largely driven by our AI investments in search, most notably AI overviews and AI mode. Let me dive into the momentum we are seeing.

As we have shared before. AI overviews drive meaningful query growth. This effect was even stronger in Q3 as users continue to learn that Google can answer more of their questions. And it’s particularly encouraging to see the effect was more pronounced with younger people. We are also seeing that AI mode is resonating well with users in the U.S. We have seen strong and consistent week-over-week growth in usage since launch, and queries doubled over the quarter. Over the last quarter, we rolled out AI mode globally across 40 languages. In record time, it now has over 75 million daily active users. And we shipped over 100 improvements to the product in Q3, an incredibly fast pace. Most importantly, AI mode is already driving incremental total query growth for search.

AI Infrastructure And GPUs

Our extensive and reliable infrastructure which powers all of Google’s products is the foundation of our stack and a key differentiator. We are scaling the most advanced chips in our data centers, including GPUs from our partner Nvidia, as well as our own purpose-built TPUs (Tensor Processing Units). And we are the only company providing a wide range of both.

As we announced yesterday at Nvidia GTC, we are now shipping the new A4X Max instances powered by NVIDIA GB300 [GPUs] to our cloud customers. Our highly sought-after TPU portfolio is led by our seventh-generation TPU Ironwood, which will be generally available soon. We are investing in TPU capacity to meet the tremendous demand we are seeing from customers and partners, and we are excited that Anthropic recently shared plans to access up to 1 million TPUs.

World-Class AI Research, Including Models and Tooling

Our models are world leading. Gemini 2.5 Pro, Veo Genie 3, and our under viral sensation Nano Banana are among the very best in class. Over 230 million videos have been generated with Veo 3, and more than 13 million developers have built with our generative models. We’re looking forward to the release of Gemini 3 later this year.

Quantum Computing

Last week, we announced that our Willow quantum chip achieved a major breakthrough, running an algorithm 13,000 times faster than one of the world’s best supercomputers. And the result is verifiable, paving the way to future practical applications. Speaking of quantum, let me congratulate Michel Devoret, our chief scientist for quantum hardware. He received a Nobel in physics for early research he did in the 1980s. Three Nobels awarded to current Googlers in two years. Incredible.

Google Cloud

Our complete enterprise AI product portfolio is accelerating growth in revenue, operating margins, and backlog. In Q3, customer demand strengthened in three ways. One, we are signing new customers faster. The number of new GCP [Google Cloud Platform] customers increased by nearly 34 percent year over year. Two, we are signing larger deals. We have signed more deals [worth] over $1 billion through Q3 this year than we did in the previous two years combined. Third, we are deepening our relationships. Over 70 percent of existing Google Cloud customers use our AI products. …

As we scale, we are diversifying revenue. To date, 13 product lines are each at an annual run rate over $1 billion. And we are improving operating margins with highly differentiated products built with our own technology. This deep product differentiation starts with our AI infrastructure. We have a decade of experience building AI accelerators, and today offer the widest array of chips. … It’s why nine of the top 10 AI labs choose Google Cloud. We are also the only cloud provider offering our own leading generative AI models, including Gemini, Imagen, Veo, Chirp, and Lyria. Adoption is rapidly accelerating. In Q3, revenue from products built on our generative AI models grew more than 200 percent year over year. Over the past 12 months, nearly 150 Google Cloud customers each processed approximately 1 trillion tokens with our models for a wide range of applications.

Gemini And Gemini Enterprise

Our first party models like Gemini now process 7 billion tokens per minute via direct API use by our customers. The Gemini app now has over 650 million monthly active users, and queries increased by 3X from Q2. …

Earlier this month, we launched Gemini Enterprise, the new front door for AI in the workplace. And we are seeing strong adoption for agents built on this platform. Our packaged enterprise agents in Gemini Enterprise are optimized for a variety of domains, are highly differentiated, and offer significant out of box value to customers. We have already crossed 2 million subscribers across 700 companies.