CEO Sundar Pichai detailed Google’s approach to managing supply constraints amid rising demand, highlighted Gemini 3 Pro’s rapid adoption, announced over 8 million paid seats sold for Gemini Enterprise, and outlined plans to invest up to $185 billion in capital expenditures in 2026. During Google’s Q4 2025 earnings call, Pichai acknowledged ongoing supply constraints despite expanding capacity, driven by strong demand across services, Google DeepMind projects, and cloud infrastructure. He emphasized long-term planning amid challenges like power, land, and supply chain limitations, recognizing the importance of efficient, world-class execution. Google Cloud captured historic global market-share gains in Q4 2025, now holding 13% of the worldwide cloud market. Financially, Google reported $114 billion in Q4 revenue, up 18% year-over-year, reaching a $456 billion annual run rate, with operating income growing 16% to around $36 billion. Google Cloud’s sales surged 48% to $17. 7 billion, representing a record $71 billion annual run rate. Key points from Pichai’s commentary include: - **Capacity Constraints:** Pichai highlighted compute capacity as a critical challenge, involving power, land, and supply chain issues. Despite ongoing constraints, investments focus on long-term growth, with acknowledgment that supply chain delays affect current availability. - **Gemini Enterprise Success:** Launched four months earlier, Gemini Enterprise has sold over 8 million paid seats across more than 2, 800 companies—including BNY and Virgin Voyages—to enhance knowledge management and automate processes. The platform managed over 5 billion customer interactions in Q4, growing 65% year-over-year, with clients like Wendy’s, Kroger, and Woolworths Group. Gemini apps boast over 750 million monthly active users, with significantly increased engagement since Gemini 3’s December release. - **CapEx Investment:** Google plans to allocate $175–$185 billion in capital expenditures in 2026, reflecting confidence in AI infrastructure and growth opportunities. - **Google Cloud Growth:** Revenues rose 48%, hitting an annual run rate exceeding $70 billion.

The cloud backlog expanded 55% quarter-over-quarter to $240 billion, driven by AI demand. New customer acquisition velocity doubled since Q1 2025, with large deals (over $1 billion) surpassing the total of the previous three years combined. Existing customers are increasing commitments by over 30%. Nearly 75% of Google Cloud customers utilize vertically optimized AI offerings, using 1. 8 times more products than non-AI users, enhancing portfolio diversification. - **TPU Momentum:** Tensor Processing Units (TPUs) contribute significantly to Google Cloud’s attractiveness, providing a broad selection of accelerators tailored to customers’ needs, and enhancing data center efficiency. - **Gemini 3 Pro Adoption:** Gemini 3 Pro, noted for advanced reasoning and multimodal capabilities, achieved the fastest adoption rate in Google’s history. It processes three times more daily tokens than Gemini 2. 5 Pro and powers Google Antigravity, an autonomous software planning and execution platform. Launched just over two months ago, Gemini 3 Pro has attracted over 1. 5 million weekly users. Overall, Google’s models now process over 10 billion tokens per minute via direct API, up from 7 billion in the previous quarter. In summary, Sundar Pichai underscored the company’s strategy to navigate supply limitations through substantial CapEx investment, highlighted accelerating growth in Google Cloud and AI platforms, and celebrated Gemini product milestones that position Google at the forefront of AI deployment and cloud services expansion.