Alphabet and Amazon are each investing roughly $200 billion in AI data centers, but the article finds Alphabet is converting that spending into growth faster. Google Cloud revenue jumped 82% to $24.77 billion in the second quarter, up from 63% growth in Q1, while AWS grew 36.7% to $42.2 billion with a $496 billion backlog, versus over $460 billion for Google Cloud in Q1. Alphabet funded its buildout by raising about $70 billion in equity and debt and suspending buybacks, and posted quarterly free cash flow of -$5.86 billion, while Amazon's trailing free cash flow was -$7.6 billion. The author leans toward Alphabet, citing faster cloud growth on a smaller quarterly capex bill and shares that rose 49.49% over the past year versus 19.95% for Amazon. Key watch items include whether Google Cloud keeps outpacing AWS and whether Amazon starts selling Trainium chips to outside customers.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Between Amazon and Alphabet One’s Gotten Much More Bang for Their 200 Billion Bucks
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