Google Cloud used its Next conference to highlight what CEO Thomas Kurian described as a shift from experimentation to scaled deployment of artificial intelligence, telling attendees that “nearly 75% of Google Cloud customers now leverage our AI products to power their businesses.” Kurian said the focus for enterprises is now moving AI “into production across your entire enterprise,” arguing that success requires “a unified stack” rather than “fragmented silicon and disconnected models.”
Alphabet outlines increased investment and internal AI productivity gains
Alphabet NASDAQ: GOOG CEO Sundar Pichai said the company is making significant long-term investments to support what he called the “agentic era.” Pichai said Alphabet invested $31 billion in capital expenditures in 2022 and plans to invest $175 billion to $185 billion in total CapEx this year, calling it “a nearly 6x increase in just four years.” He added that for 2026, “just over half of our machine learning compute is expected to go towards the cloud business.”
Pichai also detailed internal use cases. He said “nearly 75% of all new code at Google is AI-generated and approved by engineers,” up from 50% last fall, and described an agent-driven approach to a complex code migration that was completed “6x faster than we could have a year ago.” He said marketing teams used models to generate “thousands of variations” of creative assets for a Gemini and Chrome launch, resulting in “70% faster turnaround and a 20% increase in conversion.” In security operations, Pichai said agents triage “tens of thousands of unstructured threat reports each month,” reducing threat mitigation time “by over 90%.”
Gemini Enterprise Agent Platform and new model previews
Pichai announced a “new Gemini Enterprise Agent Platform,” describing it as “mission control for the agentic enterprise” to “build, scale, govern, and optimize your agents.” Kurian positioned Gemini Enterprise as an end-to-end system “between your data, your people, and your goals,” and outlined Google Cloud’s broader “blueprint for the agentic enterprise,” spanning infrastructure, data, security, tooling, and pre-built agents.
Kurian said the Gemini Enterprise Agent Platform expands Vertex AI capabilities and introduced several model updates in preview, including Gemini 3.1 Pro, which he called Google’s “most advanced reasoning model” and said is optimized for “complex workflow orchestration.” He also announced preview availability for Gemini 3.1 Flash Image (also called “Nano Banana 2”), Veo 3.1 Lite for high-volume video applications, and Lyria 3 Pro for enterprise-grade audio and music. Kurian said Google Cloud also supports Anthropic models including Claude Opus, Sonnet, and Haiku, and added support for “Anthropic’s Claude Opus 4.7.”
Kurian also described what he called a “monumental partnership” with Apple, saying Google Cloud is collaborating with Apple “as their preferred cloud provider to develop the next generation of Apple foundation models based on Gemini technology,” which he said will help power future Apple Intelligence features, “including a more personalized Siri coming later this year.”
Customer examples and agent management features
Executives cited multiple customer deployments. Kurian said Citi Wealth, in partnership with Google Cloud and DeepMind, unveiled “Citi Sky,” described as an “always-on AI-powered member of the Citi Wealth team” designed to bring “Citi’s global intelligence” to clients in multiple languages. He also cited Honeywell’s use of digital twins trained on “over a million product specifications,” Liverpool’s projection of a “10x return on investment” for a shopping assistant, and a partnership with NASA using Gemini Enterprise agents for flight readiness and astronaut safety for Artemis II, which Kurian said “set the human space flight record for traveling the furthest distance from Earth.”
Kurian and Applied AI manager Erica Chuong demonstrated Gemini Enterprise orchestrating multiple agents with a single prompt in a retail scenario, including trend analysis, identification of dead stock, creative generation, and a developer handoff via Jira with notifications in Google Chat. Kurian also described adoption metrics from customers, including Signal Iduna reaching “80% adoption within weeks,” with “11,000 employees” building specialized agents, and KPMG reaching “90% adoption with over 100 agents in just the first month.” He added that Merck is bringing Gemini Enterprise to “75,000 employees” and that Walmart is rolling it out to store leaders.
Kurian outlined platform components intended to support governance and security at scale, including a low-code “agent studio,” an “agent registry,” a “skills and tools registry,” an “agent marketplace” of partner agents, and native integration with Model Context Protocol (MCP). He also described “agent identity” with a unique cryptographic ID per agent, a centralized “agent gateway,” and observability tooling with “OTel-compliant telemetry.”
Infrastructure, data platform updates, and security strategy
SVP and Chief Technologist Amin Vahdat detailed Google Cloud’s “AI Hypercomputer,” arguing compute in the agentic era must be treated as the entire data center. Vahdat announced “eighth-generation TPUs,” introducing TPU 8t for training and TPU 8i for inference and reinforcement learning, and shared performance claims including “nearly 3x the compute performance per pod over previous generations” for 8t and a “9.8x increase in performance over the 256-chip Ironwood pod” for 8i. He also announced Google Cloud Axion N4A instances, saying they deliver “up to twice better price performance and 80% better performance per watt than comparable x86 instances,” and said Google Cloud will be “among the first to offer the NVIDIA Vera Rubin NVL72.”
Chief Product and Business Officer Karthik Narain introduced the “Agentic Data Cloud,” including a new “Knowledge Catalog” intended to unify structured and unstructured data context, “Smart Storage” to tag and enrich files upon ingestion, a “Data Agent Kit” integrated into tools like IDEs and terminals, a “Lightning Engine for Apache Spark,” and a “Cross-Cloud Lakehouse” built on Apache Iceberg designed to reason over data across clouds without moving it. Managing Director Yasmeen Ahmad demonstrated an example workflow using recipe PDFs and cross-cloud data to identify an allergen link and generate an ROI forecast, describing it as turning “a viral trend into a $15 million decision” in under five minutes within the demo.
On security, Google Cloud security leader Francis deSouza said defenders must operate “at machine speed,” describing a Gemini-native agentic security operations center and claiming triage agents can turn “30-minute investigations into 60-second resolutions.” He also said Google Cloud integrated dark web intelligence can identify external threats “with 98% accuracy.” DeSouza said Google Cloud is integrating Wiz into its security approach, “officially” welcoming the Wiz team, and Wiz co-founder Yinon Costica described Wiz as an “AI application protection platform” built to provide visibility into AI stacks and automate validation and remediation of risks using its Red, Blue, and Green agents.
Kurian closed by emphasizing openness as a strategic theme, saying Google Cloud aims to provide an integrated stack while preserving “the freedom to choose the world’s best chips and models,” “the freedom to run AI wherever your data may live,” and “deep governance features.” He also highlighted partner ecosystem expansion, citing firms including Accenture, BCG, Deloitte, and McKinsey as expanding their Google Gemini AI practices.
About Alphabet NASDAQ: GOOG
Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.
Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.
Further Reading
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Alphabet, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Alphabet wasn't on the list.
While Alphabet currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
Get This Free Report
