Plus, their committed cloud backlog jumped $15.8B in just three months (+38% YoY), underscoring GCP's role in the multi-year AI opportunity. Here's a breakdown.

Revenue Surge & AI Impact

GCP delivered $13.6B in Q2 revenue, up 32% YoY—reaccelerating from Q1's 28% and surpassing estimates. This pushes the annual run-rate beyond $50B, driven by booming AI demand.

Deals $250M+ doubled year-over-year, while "in the first half of 2025, we signed the same number of deals over $1 million that we did in all of 2024," CEO Sundar Pichai revealed—another 2X jump in major deals.

Gemini usage grew 35x year-over-year across 85,000+ enterprises showing adoption of AI workflows.

Cloud Commits Surge: Multi-Year Expansion

GCP backlog hit $106B, growing 38% YoY and 18% sequentially. Commits jumped an incredible $15B+ in just the last quarter alone.

This suggests enterprises are increasingly comfortable signing large commits as they deploy AI at scale, with committed spend also partially flowing through GCP's cloud marketplace.

For alliances, this creates an opportunity to leverage commits to co-sell AI solutions via marketplace, speeding up your own GTM.

AgentSpace: Enterprise Appetite for AI Agents

AgentSpace interest highlights the appetite for AI agent usage. "Over 1 million subscriptions have been booked for AgentSpace ahead of its general availability," Pichai emphasized.

AgentSpace is GCP’s platform for AI agents, chat, and search. Its Agent Gallery has integration into Google Cloud Marketplace, pulling in partner-developed agents for seamless deployment.

For Google partners, this will open doors to embed your agents in GCP's ecosystem, tapping into enterprise workflows and fostering interoperability and usage —think faster innovation cycles and shared growth in AI adoption.

Co-opetition: New Rules for the AI era

In a fascinating twist, OpenAI is now using Google Cloud hardware infrastructure.

"We are very excited to be partnering with them on Google Cloud... look forward to investing more in that relationship" Pichai said, showcasing how AI fosters collaboration amid competition.

He highlighted that nearly all Gen AI unicorns and leading AI labs like SSI rely on Google's TPUs.

CapEx Ramp-Up: Sustained Acceleration

To sustain this AI demand, Google upped FY2025 CapEx to ~$85B (from an already high $75B), with Q2 at $22.4B—mostly servers and data centers.

CFO Ashkenazi flagged a "tight demand-supply environment" into 2026, signaling AI demand outpacing capacity. Among hyperscalers, this positions GCP as aggressively investing ($85B trails AWS's $100B+ but for now edges Azure's $80B), ensuring customers and partners have the infrastructure for scalable AI deployments.

It speaks to confidence: GCP is building for leading in AI infrastructure and stack.

What's your strategy for AI alliances and Cloud GTM?