In today’s Cloud Wars Minute, I analyze Alphabet’s $50 billion investment in cloud infrastructure, foreseeing revolutionary advancements in AI services.
Highlights
00:16 — Google Cloud is part of a large organization that is definitely out to set its own future, and that is parent company Alphabet. In its recent fourth quarter earnings results announcement, Alphabet said it will be investing about $50 billion in technical infrastructure in calendar 2024.
01:47 — This is one of those cases where we see in this greatest growth market the world has ever known that things don’t come free. The demand that Google Cloud is seeing from customers for GenAI services is exploding.
02:51 — CFO Ruth Porat said these investments will be powering the extraordinary applications of AI we’re seeing in DeepMind, Google Services, and Google Cloud. And again, the cornerstone of that now is Google Cloud’s Gemini series of models. Also, Porat said it’s seeing surging demand across a broad spectrum of individuals and entities for cloud-delivered, AI-powered services.
04:32 — So, if Alphabet’s putting in $50 billion this year, I doubt Microsoft’s going to be far under that. Oracle won’t be investing at those levels, but you add them and AWS in, and there’s a total of $150 billion to $175 billion this year in cloud infrastructure investment — somewhere in that range.
