Cloud computing's big three AI infrastructure capex reaches up to $220 billion, with Q2 cloud revenue all beating expectations

Odaily News Amazon, Microsoft, and Google Cloud all reported Q2 cloud revenue above market expectations. Amazon disclosed that AWS Q2 revenue grew 37% year-over-year to $42.23 billion, the fastest growth rate since 2021, with Amazon's overall revenue surpassing $200.6 billion for the first time and operating profit reaching $16.6 billion.

Microsoft's Q4 fiscal 2026 revenue grew 18% year-over-year to $90.007 billion, with Azure revenue growth accelerating from 40% in the previous quarter to 43%, and full-year revenue surpassing $100 billion for the first time. Google's parent company Alphabet disclosed that Q2 Google Cloud revenue grew 82% year-over-year to $24.8 billion, with contract backlog increasing to $514 billion.

Amazon raised its capital expenditure guidance for this year from approximately $200 billion to $220 billion, primarily for data centers, servers, network equipment, and AI semiconductors. Alphabet raised its capital expenditure guidance for this year to up to $205 billion, while Microsoft's quarterly capital expenditure was $41 billion, up 69% year-over-year.

Alphabet CEO Sundar Pichai stated that demand for AI infrastructure and AI solutions is driving cloud business growth, with 90% of Fortune 100 companies using Gemini Enterprise. Amazon CEO Andy Jassy said that even with the $220 billion investment, it will still not be enough to meet all customer AI demand this year, and this situation will continue into next year.