Google Cloud backlog is $240b, up 55% in one quarter.

* AI is a primary growth driver across Search and Cloud * Google Cloud revenue is up 48% year over year, AI led * Cloud backlog is $240B, up 55% sequential and more than 2× year over year * 2026 CapEx is planned at $175B to $185B (2x over 2025), mostly for AI infrastructure * CapEx is about 60% chips and 40% data centers and networking buildout * Over half of ML compute capacity is allocated to Cloud customers * Gemini serving unit cost is down 78% year over year * Gemini 3 Pro processes 3× more daily tokens than the prior model * First party models process over 10B tokens per minute via APIs * Nearly 350 customers process 100B+ tokens per month each * Generative AI Cloud product revenue is up about 400% year over year * More than 120,000 enterprises are using Gemini models * More than 8M paid Gemini Enterprise seats are sold across ~2,800 companies * Gemini Enterprise handled 5B customer interactions this quarter * Gemini app has 750M monthly active users * AI Mode queries per user have doubled since launch * AI Mode queries are about 3× longer than traditional searches * About 1 in 6 AI Mode queries are voice or image based * Circle to Search is live on 580M+ Android devices * About 50% of internal code is written with AI coding agents assistance * AI demand is described as strong but compute supply constrained tldr: real AI demand, real AI demand, real AI demand, no supply, no supply, no supply