Alphabet’s second-quarter earnings announcement on Wednesday (July 22) showed enterprise demand for computing capacity, Gemini models and AI applications contributed to an 82% increase in Google Cloud revenue and pushed Cloud backlog to $514 billion. CEO Sundar Pichai said his expectations for generative AI returns had changed, noting many companies are “barely scratching the early stages of what’s possible here.” CFO Anat Ashkenazi acknowledged that demand continues to run ahead of capacity. Google Cloud revenue reached $24.8 billion with Google Cloud Platform growing faster than Cloud overall, and Cloud operating income more than tripled to $8.8 billion. Search and other revenue rose 17% to $63.3 billion, with AI Overviews and AI Mode operating as parts of a single Search experience. Nearly 90% of Fortune 100 companies are using Gemini Enterprise, and nearly 500 Cloud customers have each processed more than 1 trillion tokens during the past year. YouTube advertising revenue increased 13% to $11.1 billion, and overall advertising revenue rose 14%.