Alphabet discloses approximately $98.5 billions in contingent commitments related to AI chip buybacks and other obligations

Alphabet stated that demand for its cloud services is growing rapidly, which is evident from the increase in its “backlog orders” (i.e., cloud service contracts that have not yet been fulfilled). However, more than one-third of this quarterly growth comes from a joint venture in which the company holds an equity stake. This information was disclosed in a quarterly filing submitted on Thursday. The filing outlines AI-related risks facing Alphabet, with a scope exceeding what the company discussed during the previous day’s earnings call. In addition to more than $1 trillion in purchase commitments, future lease payments, and other obligations disclosed by the Chief Financial Officer during the investor call, the document also lists about $98.5 billion in contingent commitments—that is, obligations the company may have to assume under certain conditions. This amount has increased by about $23 billion from the previous quarter. These commitments include: guaranteeing lease payments for data centers, supporting partners in power equipment procurement, and potentially being required to repurchase AI chip systems from customers under certain circumstances.