Alphabet, Google's parent company, reported strong cloud growth on Wednesday but missed overall forecasts, CNBC and The Verge report.

Google Cloud revenue rose 103 percent from a year earlier to $30.7 billion, the outlets report. CNBC reports analysts expected $28.7 billion. "We are seeing extraordinary demand," Google Cloud chief Thomas Kurian said.

Total revenue rose 25 percent to $127.6 billion. But CNBC reports that was just below the $128.22 billion analysts expected. Adjusted earnings were $2.67 a share, short of the $3.02 forecast. CNBC calls it the company's first miss on revenue and profit together in nearly four years.

Shares slumped more than 10 percent, CNBC reports. Net income fell to $26.17 billion from $34.98 billion a year ago. Free cash flow was negative $9.07 billion, far worse than the $2.70 billion analysts expected.

Heavy AI spending is a key worry for investors. Alphabet spent $51.36 billion on new equipment in the quarter. Its finance chief said spending will "increase significantly" next year. CNBC reports long-term debt rose to $125.1 billion from $21.6 billion a year earlier.

Chief executive Sundar Pichai said AI is driving more searches. "Our year-over-year query growth rate is the highest it's been in the last five years," he said, The Verge reports. Search revenue rose 12 percent, and the Gemini app passed 1 billion monthly users.

The Verge also reports YouTube Music and Premium passed 150 million subscribers, including trials.

What we know: Cloud revenue more than doubled, but overall results missed forecasts.
What we don't: When Alphabet's AI spending will pay off for investors.