Google's Cloud Revenue Converges to NVIDIA's Growth Rate
Google Cloud’s AI compute business is now growing at a rate close to NVIDIA’s data center segment.
Tunguz says Google Cloud grew 82% year over year to $24.8 billion in Q2 2026, ahead of consensus. TPU system sales began contributing revenue, but Google said the effect was small and most TPU revenue lands in 2027. Backlog rose to $514 billion, with just over half expected to convert within 24 months. Operating margin reached 35.6%, narrowing the gap with AWS. Tomasz Tunguz's note
Tunguz says Google Cloud grew 82% year over year to $24.8 billion in Q2 2026, ahead of consensus. TPU system sales began contributing revenue, but Google said the effect was small and most TPU revenue lands in 2027. Backlog rose to $514 billion, with just over half expected to convert within 24 months. Operating margin reached 35.6%, narrowing the gap with AWS. Tomasz Tunguz's note
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