Google puts AI agents at heart of its enterprise money-making push

Google Puts AI Agents at Heart of Enterprise Money-Making Push

Alphabet's Google is deepening its push into enterprise software, signaling
signaling a strategic shift towards artificial intelligence (AI) agents as 
a key driver of revenue growth.

At the company's annual cloud conference in Las Vegas, CEO Sundar Pichai an
and other top executives sought to position Google's AI tools as production
production-ready infrastructure for large business customers. The company i
is banking on its unique offerings, including custom chips and models, to o
outflank traditional cloud rivals and AI startups.

The experimental phase is behind us, and now the real challenge begins, s
said Thomas Kurian, CEO of Google Cloud.

Google is seeking to capitalize on the growing demand for AI agents in ente
enterprise environments. These powerful digital assistants can plan, decide
decide, and act autonomously, sparking concerns over safety, reliability, a
and oversight.

There's definitely a strategic shift as the models become much more sophis
sophisticated, Kurian told Reuters. The primary use case of Vertex AI has 
shifted from old-style machine learning to a sudden explosion in users bu
building their own custom AI agents.

Google Cloud, once seen as a laggard to rivals Amazon and Microsoft, has ga
gained traction with enterprise customers powered by massive bets on AI and
and years of heavy investment in data centers, custom chips, and networking
networking gear. Marcia Brey, a senior executive at GE Appliances and a Goo
Google customer, told Reuters that Google's suite of tools and existing ent
enterprise data allowed her logistics and distribution team to deploy AI fa
faster compared with other products the company had tested.

New Google Chips

The company unveiled two new custom tensor processing units (TPUs) on Wedne
Wednesday the TPU 8t and 8i. Both have been sort of architected and desig
designed end-to-end for [what's] called the age of agents, and sort of the 
unique requirements of agent-based solutions and applications, said Mark L
Lohmeyer, vice president and general manager of compute and AI infrastructu
infrastructure.

The TPU 8t is designed for training large language models that underpin cha
chatbots like Anthropic's Claude. The chip can link together to scale to 1 
million chips for large training needs. Google's TPU 8i is tuned for the ty
type of computing necessary to generate instant responses from AI agents, a
a process known as inference.

Agents over Coding

In addition to traditional enterprise providers and other hyperscalers, a n
new class of competitors is emerging in enterprise AI model providers. So 
far, coding assistants and plug-ins that connect AI models to existing ente
enterprise software have emerged as lucrative channels for AI revenue and p
payback on their heavy investments.

While rivals are pushing hard on their coding products, Google kept coding 
largely out of the spotlight at its cloud conference. Pichai said in his pr
prerecorded comments that 75 percent of all new code at Google is generated
generated by AI, compared to 50 percent last fall.

Kurian instead cast the AI battleground as one defined by agents, governanc
governance, and enterprise deployment. Some people are using the models to
to write code, he said. They can use Gemini and also other tools like Cla
Claude. But in other cases, we have unique things. There's capability in th
the platform that nobody else offers.

The long-term bet to build out a vast suite of in-house offerings has given
given Google an edge over other large cloud providers. This has helped Goog
Google grow its overall cloud market share to 14 percent at the end of 2025
2025, though it still trails rivals Amazon and Microsoft, according to data
data from Synergy Research.

This edited blog post highlights Google's strategic shift towards AI agents
agents as a key driver of enterprise revenue growth. With the company's foc
focus on building out its own in-house offerings, from models to chips, rat
rather than relying on third-party vendors, Google is poised to maintain it
its edge over other large cloud providers.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.