Karan Bajwa, president of Asia Pacific at Google Cloud, says clients are shifting toward shorter, more flexible agreements for generative AI services. Rapid AI innovation is making long-term commitments to a single provider less appealing as enterprises seek to test the latest tools and services.
The shift extends beyond cloud providers: major IT services firms are also reporting shorter tenures for AI-related contracts. Google, the world’s third-largest cloud services provider, is adapting to the change.
Google Cloud revenue doubled year over year in the July–September quarter. Growing adoption of its platform for AI workloads partly drove the increase.
Separately, Alphabet’s €6 billion euro-denominated bond offering is scheduled to close today. Investors also face a December 1 deadline to join a securities fraud class action lawsuit against the company.