[crowbahr]

Google is making money on selling cloud compute. Their margins have gone from 9% to 32%.

They're soaking up the investor bonanza into AI - Gemini ain't making them money.

For context Cloud Compute made 20bn in Q1, Other services made 90bn.

[casualscience]

Search, yt, etc.. are the real revenue sources for Google. But they are serving [3.2 quadrillion tokens per month](https://blog.google/innovation-and-ai/sundar-pichai-io-2026/...) and have ramped up a ton in 2026, yet profits continue to expand.

Comparing to ad revenue from a company like meta, the story that Gemini tokens are a strong cash drag on Google just doesn't add up. It seems at worst they are losing like 50 cents/1M tokens (including r&d spend, data centers, etc..), and very possible they are actually profitable per token.

Which is much better than anthropic and openai.