Google Cloud is on a tear. In the first quarter of 2025, it pulled in $12.3 billion in revenue, a 28% jump year-over-year. That growth didn’t just ride the general cloud wave; it outpaced it, thanks to a decisive push into AI.
AI Is Driving the Growth Engine
At the center of this surge is Google Cloud Platform (GCP), which continues to separate itself from competitors through deep investments in artificial intelligence. From infrastructure to tools to ready-to-use AI agents, Google isn’t just participating in the AI boom; it’s leading it.
Full-Stack AI, Built to Scale
Google’s AI approach covers the full stack: infrastructure, foundation models, and developer tools. It’s not just about having AI, but making it accessible and scalable for real-world business needs.
Take infrastructure. Google Cloud offers the widest range of TPUs and GPUs in the industry, and it’s not stopping there. The latest TPU, Ironwood, delivers over 10x the compute power of a top-performing DPU, nearly doubling efficiency. Google was also the first to offer NVIDIA’s cutting-edge B200 GPUs and is prepping for the next-gen Veriobin GPUs.
Vertex AI and the Rise of Agents
Google’s Vertex AI platform is a major reason customers are flocking to GCP. With over 200 foundation models available, including Gemini 2.5 Pro and Imagen 3, it’s a one-stop shop for building custom AI workflows. Customers can also tap into open-source and third-party models, offering flexibility few can match.
Then there are AI agents. Google is positioning itself as a go-to provider in this space with tools like the Agent Development Kit (open-source framework), Agent Designer (low-code builder), and Google Agent Space (an enterprise AI hub). The goal is to make it easy to create, deploy, and scale AI agents across the enterprise.
Customer Demand vs. Supply
The only thing potentially holding Google Cloud back is its own popularity. Coming out of 2024, it had more customer demand than available capacity, a trend that continued into Q1. The company is addressing this with heavy CapEx: $17.2 billion in Q1 alone, much of it going into cloud infrastructure. That is part of a projected $75 billion in investment for the full year.
Real-World Results
Customers aren’t just signing up, they’re seeing results. Lowe’s is using Vertex AI to embed intelligence across its business. Verizon is running contextual AI on highly sensitive data using Google’s Sovereign AI and Distributed Cloud. KPMG is using AI agents to streamline internal workflows. Royal Canin boosted marketing performance using Google Cloud tools. Over 500 companies shared success stories at Cloud Next.
Workspace and Security Go AI-Native
Beyond the cloud platform, Google is threading AI through its other offerings. Google Workspace now delivers over 2 billion AI assists each month, from summarizing emails to enhancing Docs. On the security front, Gemini-powered tools are spotting malware and prioritizing threats faster than ever. With the planned acquisition of Wiz, Google aims to become a security powerhouse across multi-cloud environments.
Bottom Line: Google Cloud’s growth story in 2025 isn’t just about cloud. It’s about how AI is redefining what the cloud can do, and Google is investing heavily to stay ahead. From next-gen chips to enterprise-ready AI agents, they’re not just riding the AI wave; they’re helping shape it.