Alphabet Inc. (GOOGL) reported that its Google Cloud division accounted for 13.6% of its total revenues in Q1 2025, with revenues rising 28.1% year-over-year to $12.26 billion. The growth is driven by strong demand for generative AI solutions and infrastructure, highlighted by recent partnerships with Ecobank in Africa and BBVA.
According to Synergy Research Group, Google Cloud’s market share stands at 22%, while Amazon Web Services leads at 29% and Microsoft holds 12%. Alphabet’s cloud service is benefiting from strategic partnerships, notably with NVIDIA, enhancing its ability to support AI initiatives.
Despite these advances, Alphabet’s shares have dropped 6.8% year-to-date, compared to a 7% increase in the broader technology sector. The company anticipates a $75 billion investment in capital expenditures for 2025 to bolster its infrastructure, although regulatory challenges from the Department of Justice present a significant risk to its competitive position.
