Google Cloud Revenue Surges 63% YoY in Q1 — Enterprise AI Solutions Become Primary Growth Driver for First Time

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Alphabet reported Q1 2026 earnings showing Google Cloud revenue grew 63% YoY, beating expectations. CEO Sundar Pichai stated enterprise AI solutions became the primary growth driver for cloud for the first time. AWS similarly hit $37.59B (28% growth, fastest in 3+ years). The cloud providers capturing AI workloads are growing; the SaaS companies running on those clouds are shrinking in valuation. Infrastructure wins, application layers compress.