In today's Cloud Wars Minute, I dig into why Google Cloud’s momentum in AI-centric deals is reshaping the entire cloud landscape.

Highlights

00:30 — A few major things became evident from Google Cloud's third-quarter results from late last month. One, if you look at the giant deals Google Cloud signed in the first three quarters of 2025, it inked more billion-dollar-plus deals than it did in all of 2023 and 2024 combined. The pace of these huge investments by businesses is accelerating.

01:05 — Alphabet CEO Sundar Pichai expressed excitement that enterprise AI is now becoming a huge factor of these massive deals. In just three quarters, Google Cloud signed more billion-dollar deals than in the previous eight combined. Seventy percent of all Google Cloud customers are now purchasing the company’s AI products and services. Another indicator of momentum is its backlog.

02:25 — Pichai also said that Google Cloud now has 13 products with annualized revenue run rates exceeding $1 billion. He emphasized the company's diversification and scaling of its product line, many of which are tied to enterprise AI. Gemini Enterprise has already been adopted by over 700 customers and deployed across more than two million seats.

03:36 —Over the last two years, Google Cloud has been the fastest-growing player in the Cloud Wars Top 10. I’ll go into more detail in an article later this morning, but it’s worth noting that Google Cloud’s reign as the number one fastest-growing company is about to end. That’s because Palantir, a new entrant into the Top 10, posted an eye-popping 63% revenue growth in Q3.

04:15 — Still, if you set aside the outlier of Palantir, Google Cloud remains the fastest-growing among the rest. It's executing well, with lots of momentum. The backlog data underscores that this isn't just about past performance — it’s a forward-looking indicator that their pipeline is incredibly strong. So, hats off to Google Cloud for doing a great job.

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