Google Cloud Revenue Surges 63% to $20 Billion, Outpacing Amazon and Microsoft as Big Tech AI Spending Hits $700 Billion

Google Cloud posted $20.03 billion in Q1 2026 revenue, a 63% year-over-year increase — the strongest growth rate since Google began breaking out cloud results in 2020 and well above StreetAccount's $18.05 billion consensus. Alphabet CEO Sundar Pichai said products built with Google's generative AI models grew 800% year-over-year, with AI token growth reaching 16 billion tokens per minute, up from 10 billion in Q4 2025. Amazon and Microsoft also reported cloud growth of 28% and 40% respectively, but both were outpaced by Google. All four major U.S. tech giants that reported earnings signaled continued AI investment, with combined outlays now projected to exceed $700 billion in 2026, up from around $600 billion previously expected. Microsoft alone forecasts $190 billion in capex for 2026. Pichai noted that cloud growth could have been even higher were it not for industry-wide capacity constraints on computing power.