Headline Summary: Alphabet shares surged 10% after the company reported Q1 earnings, as cloud revenue sharply accelerated and multiple key AI and subscription metrics showed outsized growth that surpassed investor expectations. Key Takeaways:

• Google Cloud revenue grew 63%, exceeding $20 billion for the first time with cloud backlog nearly doubling quarter-on-quarter to over $460 billion.
• Cloud demand was driven by explosive growth in GenAI products, with revenue from AI model-based offerings up nearly 800% year-over-year and new customer acquisition doubling.
• Search & Other revenue grew 19%, supported by robust usage of new AI-powered features and all-time-high query volumes.
• Paid subscriptions reached 350 million, led by the Gemini app and continued momentum in YouTube and Google One.
• Multiple AI milestones highlighted, including 40% sequential growth in Gemini Enterprise paid users and over 500 million downloads of open-source AI models.