Google Cloud Backlog Nears $462B as CapEx Rises, Invests $75M in A24 AI
GOOG•Alphabet’s cloud revenue surged 63% in Q1 2026 to over $20 billion, with its AI-driven enterprise backlog nearly doubling to $462 billion and driving 2026 CapEx guidance of $180-190 billion. Google will invest $75 million in A24 under a multi-project AI research partnership to develop new creative workflows and filmmaking tools.
1. Cloud Revenue and AI Backlog Growth
Alphabet’s cloud division posted 63% year-over-year revenue growth in Q1 2026, topping $20 billion as enterprise AI solutions became the primary driver. The AI backlog nearly doubled to $462 billion, prompting a record 2026 capital expenditure guidance of $180-190 billion while facing near-term compute constraints.
2. A24 AI Research Partnership
Google will invest $75 million in independent film studio A24 through DeepMind to co-develop AI-powered creative workflows and production tools. The multi-project collaboration aims to integrate advanced AI features into filmmaking, giving creators direct input on emerging technologies.
