In the AI Gold Rush, the Cloud Wins by Cecilia Rikap
Even if the AI investment boom turns out to have been a bubble, the Big Tech companies that have cornered the cloud infrastructure market will emerge as strong as ever, or even stronger. That is why Amazon, Microsoft, and Google are in a league of their own, even compared to other giants like Meta and Nvidia.
LONDON—When Google (Alphabet) reported its latest quarterly results on July 22, investors balked at its negative free cash flow and increased capital expenditures on data centers. But Google is not like OpenAI or Anthropic, which are both still trying to find a profitable business model as they burn through cash. It remains a cloud-computing giant, and its cloud division’s results for the second quarter were nothing short of extraordinary.
