Google opens its Google Cloud Next 2026 conference today. JPMorgan analysts label this year's event as more significant than previous years. The conference focuses on enterprise AI adoption and the profitability of infrastructure investments.
Google Cloud revenue growth likely exceeded 50% in the first quarter. The division now serves as the company’s second-largest and fastest-growing business unit.
Google expects to unveil new custom Tensor Processing Units specialized for AI inference. These specialized chips aim to build a more resilient AI hardware supply chain.
The company committed between $175 billion and $185 billion to 2026 capital expenditures. A $240 billion contract backlog supports these massive infrastructure investments.