This week's Big Tech earnings confirmed that AI spending is accelerating, not slowing down. Alphabet, Amazon, Microsoft, and Meta all reported significant boosts from AI.
Alphabet's Google Cloud saw a stunning 63% revenue jump. CEO Sundar Pichai said enterprise AI solutions have become the primary growth driver for Cloud for the first time. Google's ad business provides ample funding for this AI push.
Amazon Web Services made a strategic shift, moving up the cloud application stack. It expanded Amazon Connect into hiring, healthcare, and supply chain planning, using AI agents. AWS also struck a deal with OpenAI, bringing its models and Codex programming assistant to the cloud. This comes as OpenAI and Microsoft revised their partnership, reducing Microsoft's exclusivity.
Meanwhile, Elon Musk accused OpenAI CEO Sam Altman of trying to "steal a charity," adding drama to their ongoing legal battle.
Stripe CEO Patrick Collison noted a "parabolic rise" in new company creation driven by AI. However, some analysts warn AI costs can still exceed human salaries.
Oracle issued a security advisory about vulnerabilities discovered by Anthropic's Mythos AI model, warning customers to protect against potential cyberattacks.
Next week's earnings lineup includes Palantir, AMD, Arm, CoreWeave, and Cloudflare.