Cloud is dead. It just hasn’t realized it yet.
Google Cloud is the standout 63% growth vs AWS (28%) and Azure (40%).
It’s not surprising - Google is clearly the winner here.
Why? Because Google sells compute and its own AI (Gemini + TPUs). Others partly rely on external models but Google is fully vertical.
Google owns:
its models (Gemini) ➡️ no licensing fees its chips (TPUs) ➡️ tighter optimization its infrastructure ➡️ better economics per token
They even claim ~80% better performance per dollar with newer TPU generations.
At the same time they’re compute constrained. Demand is so high they can’t build data centers fast enough.
Hyperscalers are spending ~12x AI revenue on infrastructure pouring hundreds of billions into data centers. They’re betting today’s margins on tomorrow’s AI demand.
It’s all-in.
...... and nobody knows where the exit is.
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