While Google is still third in the U.S. cloud infrastructure market, its business is growing rapidly and, as of the first quarter, is finally contributing positively to Alphabet’s bottom line. Earlier this week, Alphabet said Google’s cloud unit generated $191 million in operating profit, after losing a total of $4 billion in 2021 and 2022. Revenue jumped 28% from a year earlier to $7.45 billion, far outpacing Google’s struggling ad business.
“We were not in a very good situation when I joined,” Google Cloud CEO Thomas Kurian told CNBC in an interview after the results were released. “I think we were very early in the business. Most enterprises did not take us as a viable partner.”
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