AI Changes Google Cloud's Fate: From Loss Project To Alphabet's New Money Machine

JAKARTA - It used to be considered a failed project that continued to lose money, now Google Cloud has transformed into one of the fastest growing machines for Alphabet. This is thanks to aggressive strategies in the field of artificial intelligence (AI) and massive investments in data centers, special chips, and network infrastructure.

Alphabet announced that Google Cloud's revenue in the third quarter of 2025 reached more than 15 billion US dollars (approximately IDR 245 trillion), up 34 percent compared to the previous year. This spike reflects high demand for AI's services and infrastructure, including support for Google's own AI model, Gemini.

Google Cloud now challenges YouTube's position as Alphabet's second-largest source of revenue, after the search ad business. Google Cloud is one of Alphabet's most important priorities and will play a bigger role going forward," said Alphabet CEO Sundar Pichai, quoted by VOI from Reuters.

The rise of Google Cloud cannot be separated from Thomas Kurian's cold hands, the former executive of Oracle who joined in 2018. Under his leadership, Google Cloud's market share rose from 7 percent to 13 percent in 2025. Kurian brings strict business discipline, suppresses costs, and overhauls Google's previously considered too free and experimental work culture.

He moved sales strategies based on the industrial sector, not territory, so the team could better understand clients' needs. As a result, Google Cloud has now succeeded in attracting large AI customers such as OpenAI, Anthropic, and Safe Super Intelligence. In fact, nine of the world's top ten AI laboratories are now using Google Cloud services.

One of Kurian's bold steps is to open access to Google's TPU chips to the public, not just for internal divisions like DeepMind. This decision had sparked internal tension, but instead strengthened Google Cloud's position in the AI computing market. Anthropic is the main customer who uses up to a million TPU owned by Google worth tens of billions of dollars.

Google Cloud's new dominance also shifts the balance of power within Alphabet. Kurian is now an influential figure in the company's weekly strategic meeting. However, to maintain this momentum, Alphabet must continue to disburse large funds. This year, Pichai raised capital expenditures to 91 to 93 billion US dollars (around Rp1,488 trillion to Rp1,520 trillion) and is expected to increase again in 2026.

Despite concerns about the AI bubble potential, Pichai is optimistic. We have been building AI for a decade, and will continue to do so for the next decade," he said.

Google Cloud is no longer a complement to the shadow of ads and YouTube but the main motor that drives Alphabet's future.