Google Cloud chief Thomas Kurian on Tuesday outlined how the company is already turning its artificial intelligence services into revenue streams.

Kurian made this disclosure at the Goldman Sachs Communacopia and Technology Conference in San Francisco.

“We’ve made billions using AI already, ” he said.

Kurian noted that customer demand in Google Cloud’s backlog is expanding at a pace that outstrips its current revenue growth.

“Our backlog is now at $106 billion — it is growing faster than our revenue,” Kurian said.

“More than 50% of it will convert to revenue over the next two years.”

He explained that some customers pay based on usage, citing enterprise purchases of AI infrastructure as an example.

“Whether it’s a GPU, TPU or a model, you pay by token — meaning you pay by what you use,” he said.

Tokens are chunks of text that AI models handle when interpreting or generating language.

Kurian said some customers rely on Google’s customer service systems, where pricing is tied to “deflection rates.”

These rates reflect the business value provided, measured through uptime, scalability, AI capabilities, and security.