Google CEO On Being ‘Supply Constrained,’ Gemini 3 Wins, AI Sales And Google Cloud’s $240B Backlog

CEO Sundar Pichai explains dealing with supply constraints as capacity demand grows, GenAI sales numbers, historic Gemini 3 Pro momentum and Gemini Enterprise already having over 8 million paid seats.

CEO Sundar Pichai explained Google’s plan to combat supply constraints, Gemini 3 Pro momentum, how Gemini Enterprise has already sold over 8 million paid seats, and Google’s plan to spend upward of $185 billion on CapEx investments in 2026.

“We’ve been supply constrained even as we’ve been ramping up our capacity,” said CEO Pichai during Google’s recent fourth-quarter 2025 earnings call.

“I expect the demand we are seeing across the board—across our services, what we need to invest for future work for Google DeepMind, as well as for cloud—is exceptionally strong. So I do expect to go through the year in a supply constrained way,” Google’s CEO said.

Google Cloud witnessed historic global cloud market-share gains during the fourth quarter of 2025 as the cloud company now owns 13 percent share of the worldwide cloud services market.

Google’s $456 Billion Run Rate And Q4 Earnings

Before jumping into Pichai’s boldest remarks and figures during the earnings call, here are Google and Google Cloud’s financial results for the fourth quarter of 2025.

Google generated $114 billion in total revenue during the fourth quarter of 2025, representing an 18 percent increase year over year. The company’s annual run rate now stands at $456 billion.

Google’s operating income increased 16 percent year over year to roughly $36 billion.

Google Cloud reported total sales of $17.7 billion, up 48 percent year over year, which represents a record $71 billion annual run rate.

Here are the eight most important remarks from Google’s CEO during the company’s fourth-quarter 2025 earnings report regarding supply constraints, Google Cloud momentum, Gemini 3 Pro, spending $185 billion in CapEx investments this year, and what keeps Pichai up at night.

What Keeps Pichai Up At Night? Capacity Constraints

What keeps us up at night? Overall, we’ve been on this AI first trajectory for over a decade now, and it’s what we’ve been methodically thinking our way through.

It’s the reason why we’ve been working on TPUs for over a decade, as an example.

But I think specifically at this moment, maybe the top question is definitely around compute capacity, all constraints—be it power, land, supply chain constraints—how do you ramp up to meet this extraordinary demand for this moment? Get our investments right for the long term? And do it all in a way that we are driving efficiencies and doing it in a world-class way.

So that’s where I think we are meeting the moment well. It’s definitely an area where I’m spending a lot of time on.

Google’s CEO On Being ‘Supply Constrained’

We’ve been supply constrained even as we’ve been ramping up our capacity.

Obviously, CapEx spend this year is an eye towards the future. And you have to keep in mind some of the time horizons are increasing in the supply chain, etc.

So we are constantly planning for the long term and working towards that.

Obviously, how we close the gap this year is a function of what we have done in the prior years. So there is that time delay to keep in mind.

I expect the demand we are seeing across the board—across our services, what we need to invest for future work for Google DeepMind, as well as for cloud—is exceptionally strong.

So I do expect to go through the year in a supply constrained way.

Gemini Enterprise Has Over 8 Million Paid Seats

We have sold more than 8 million paid seats of Gemini Enterprise, our enterprise AI platform, that we launched just four months ago.

And our Gemini app now has over 750 million monthly active users. We are also seeing significantly higher engagement per user, especially since the launch of Gemini 3 in December.

We have sold more than 8 million paid seats of Gemini Enterprise to more than 2,800 companies including BNY and Virgin Voyages to streamline knowledge management and automate processes.

Gemini Enterprise managed over 5 billion customer interactions in Q4, growing 65 percent year over year, for customers including Wendy’s, Kroger and Woolworths Group.

2026 CapEx Investment Up To $185 Billion

Overall, we are seeing our AI investments and infrastructure drive revenue and growth across the board to meet customer demand and capitalize on the growing opportunities ahead of us.

Our 2026 CapEx investments are anticipated to be in the range of $175 [billion] to $185 billion.

Google Cloud’s $240 Billion Backlog

Google Cloud significantly accelerated with revenues growing 48 percent now on an annual run rate of over $70 billion.

Backlog grew by 55 percent quarter over quarter to $240 billion, representing a wide breadth of customers driven by demand for AI products.

Google Cloud Doubles ‘New Customer Velocity’

Google Cloud’s growth in revenue, operating margin and backlog highlights the strength of our entire portfolio.

One, we are winning more new customers faster. We exited the year with double the new customer velocity compared to Q1.

Two, we are also signing larger customer commitments. The number of deals in 2025 over $1 billion surpassed the previous three years combined.

And three, we continue to deepen our relationships with existing customers who are outpacing their initial commitments by over 30 percent.

Nearly 75 percent of Google Cloud customers have used our vertically optimized AI—from chips to models to AI platforms and enterprise AI agents—[which] offer superior performance quality, security and cost efficiency.

These AI customers use 1.8 times as many products as those who do not, enabling us to diversify our product portfolio.

Driving TPU ‘Momentum’ Via Google Cloud

In terms of TPUs, it’s reflected in our overall part of what makes Google Cloud an attractive choice. It’s the wide choice of accelerators we bring to bear here.

We meet customers in terms of what their needs are. And the choice as well as other things we bring as part of Google Cloud—like the end-to-end efficiencies in our data centers—all of that comes to bear.

That’s what you see in the momentum in Google Cloud. And given the overall investment we are making, we expect to be able to drive TPU momentum there.

GenAI Models Grew 400 Percent

We offer our leading generative AI models including Gemini, Imagine, Vio, Chirp and Liria to cloud customers.

In December alone, nearly 350 customers each processed more than 100 billion tokens.

In Q4, revenue from products built on our generative AI models grew nearly 400 percent year over year—significantly accelerating from the prior quarter.

Today, more than 120,000 enterprises use Gemini, including AI unicorns like Lovable and Open Evidence, and global enterprises like Airbus and Honeywell.

Also, 95 percent of the top 20 and over 80 percent of the top 100 SaaS companies use Gemini, including Salesforce and Shopify.

Gemini is becoming the AI engine for the world’s most successful software companies. Leading enterprises are also driving strong demand for our enterprise AI agents.

Gemini 3 Pro ‘Fastest Adoption Of Any Model In Our History’

Gemini 3 Pro drives the state of the art in reasoning and multimodal understanding. It has seen the fastest adoption of any model in our history.

Since launch, Gemini 3 Pro has consistently processed three times as many daily tokens on average as 2.5 Pro.

Our latest model powers Google Antigravity, our new development platform, where agents can autonomously plan and execute complex software tasks.

It already has more than 1.5 million weekly users after launching just over two months ago.

Our first-party models like Gemini now process over 10 billion tokens per minute via direct API used by our customers, up from 7 billion last quarter.