Google Cloud, a division of Alphabet, expects to generate $58 billion in new revenue over the next two years, with a $50 billion annual revenue run rate already surpassed. The backlog of non-recognized sales contracts is growing, with 55% expected to convert into revenue within two years.

The unit saw a 28% increase in new customers quarter-over-quarter, with nine of the top 10 AI labs now clients. Cloud computing sales represented 14% of Alphabet’s total revenue last quarter, showing significant growth potential. CEO Sundar Pichai cited cloud demand as the reason for increasing capex plans to $85 billion.

Google Cloud is positioning itself as a key player in the tech industry’s AI landscape, attracting top AI labs as customers. The unit’s growth comes as Google’s core search business faces regulatory challenges, making cloud computing an important revenue stream. The company’s $106 billion backlog is expected to drive significant revenue growth in the near future.

Read more at Yahoo Finance: Google Cloud anticipates at least $58 billion revenue boost over next two years