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00:02Google Cloud said existing customers are spending about 50 percent more than their committed
00:06contracts, helping drive 82 percent year-over-year cloud growth in the second quarter, according
00:11to CNBC.
00:13Cloud chief Thomas Kurian told CNBC the company plans to rent third-party cloud capacity for
00:18a few quarters to meet strong demand, even though it will pressure margins, because those
00:23customers typically spend more across Google's services.
00:26Shares fell 7.1 percent Thursday after Alphabet raised its 2026 capital spending forecast
00:32to between $195 billion and $205 billion, fueling investor concerns about soaring AI costs.
00:41Kurian defended the company's AI infrastructure spending, saying customers including Macy's
00:45and Macquarie Bank are already seeing measurable benefits from Google's AI tools.
00:50For all things money, visit Benzinga.com.
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