Google Cloud Revenues Soar 82% as Chip Business Booms

Google's cloud business is showing no signs of slowing down, according to its CEO Thomas Kurian. The company's second-quarter revenues came in at $24.77 billion, an impressive 82% year-over-year increase.

This growth is backed by a massive customer contract backlog of $514 billion, which Kurian attributed to the company's ability to co-design technology across the stack. This means that Google Cloud can optimize its services and hardware to provide better price performance for customers.

Kurian highlighted three ways in which Google makes money from its chip business: renting out chips on its own servers, selling chips directly to customers, and selling them through a joint venture with Blackstone.