Sundar Pichai Says Alphabet's Cloud Backlog Hit $514 Billion After 82% Revenue Growth Last Quarter. Is Google Cloud Becoming a Bigger Growth Driver Than Search?
Alphabet's Google Cloud revenue grew 82% year over year in the last quarter, with its backlog reaching $514 billion, surpassing the company's trailing 12-month revenue. While Search remains Alphabet's primary revenue driver, contributing 55% of total revenue, the massive cloud backlog and its rapid growth suggest it will become a significant growth engine in the long term, especially as Pichai noted only a small percentage of workloads have shifted to the cloud. This trend indicates a strong future for Google Cloud's profitability and its impact on Alphabet's stock.
Google Stock Rises as It Helps Avid ‘Accelerate the Creative Process’ with AI
Google's stock rose after Avid Technology announced an expanded partnership, leveraging Google Cloud and Gemini Enterprise to integrate AI into its audio and video software. This collaboration aims to accelerate the creative process for Avid users by enabling AI-powered functionalities like B-roll generation, stock footage search, and intelligent content management. Wall Street analysts maintain a Strong Buy consensus rating for Google (GOOGL), with an average price target suggesting a 28% upside.
Here’s How Much You Would Have Made Owning Alphabet Stock In The Last 15 Years
Alphabet (NASDAQ: GOOGL) has significantly outperformed the market over the last 15 years, achieving an annualized return of 24.21%. An initial investment of $1000 in GOOGL stock 15 years ago would now be worth $25,926.13, highlighting the power of compounded returns.
Micron, Alphabet, Amazon and Nvidia are part of Zacks Earnings Preview
This Zacks Earnings Preview highlights the continued strong corporate earnings foundation, with S&P 500 profit growth consistently positive for 12 quarters. Q3 2026 earnings are projected to increase by 22.3% on 10.8% higher revenues, following an exceptionally strong Q2, driven significantly by contributions from Tech companies like Micron, Alphabet, Amazon, and Nvidia. The positive revisions trend has broadened beyond Tech and Energy to include several other sectors.
Alphabet and Amazon Are Cheaper Than the S&P 500. What's Going On?
Alphabet and Amazon appear cheaper than the S&P 500 based on their current P/E ratios, but this is largely due to one-time investment gains from companies like Anthropic and SpaceX. When looking at forward earnings projections, both companies still trade at reasonable valuations given their significant roles in the AI arms race and accelerating growth rates. The article suggests that despite the skewed current P/E, Amazon and Alphabet remain solid long-term investment opportunities.
Alphabet, Meta, and Microsoft Are Hiding $3 Trillion in Debt On the AI Boom's Hidden Ledger
Nine major tech companies, including Alphabet, Meta, and Microsoft, are carrying approximately $3 trillion in off-balance-sheet AI obligations, which is triple their reported debt. This hidden debt, primarily from purchase commitments and unstarted leases for data centers and chips, has nearly doubled from a July estimate of $1.65 trillion. While not illegal, these financing arrangements obscure the true financial leverage of these companies, posing risks related to timing, visibility, and potential future depreciation costs that could impact margins if revenue growth doesn't keep pace.
Google Is Getting Paid in Marvell Stock Warrants for Buying Marvell's Chips
Google (Alphabet) has secured stock warrants from Marvell Technology as part of a deal to purchase Marvell's AI inference accelerators and other chips. This unusual arrangement allows Google to profit from Marvell's stock performance as it increases its chip purchases, effectively turning its spending into an asset. This strategy mirrors a similar deal between AMD and OpenAI, indicating a growing trend where major AI buyers are leveraging their purchasing power to gain equity stakes in their suppliers.
3 AI Stocks Built for the Next Decade
This article identifies three AI stocks—Microsoft (MSFT), Alphabet (GOOGL), and NVIDIA (NVDA)—as strong candidates for the next decade, citing their integral roles in the ongoing AI buildout. Microsoft's Azure has surpassed $100 billion in annual revenue, Alphabet's Google Cloud is the fastest-growing major cloud platform, and NVIDIA continues to dominate the silicon market for AI. The author provides bull cases, financial data, and potential risks for each company, emphasizing their durable positions in the AI capital cycle.
Alphabet Stock Ran After Its Ad Machine Had Already Shown Its Work
Alphabet's stock surged by about 70% over the past year, significantly outperforming the S&P 500, with its ad machine's performance already indicating this growth weeks before the price movement. The company's AI-powered ad tools, such as YouTube's Peak Points and improvements in search advertising (AI Max, Smart Bidding Exploration), demonstrated substantial increases in conversions and query engagement even as early as mid-2025. This strong performance, coupled with revenue growth and an improved operating margin, showed that the underlying business strength was well-documented by Alphabet's own figures, indicating the stock's potential long before its significant run.
Big Tech ETF trades down as shares of Tesla, Amazon, Alphabet fall sharply
An exchange-traded fund comprising seven major U.S. tech stocks, the Roundhill Magnificent Seven ETF, experienced a sharp decline on Thursday. Shares of Tesla, Amazon, and Alphabet were notably down, with Tesla suffering the largest loss of over 2%. The ETF's overall slump was recorded at 1.1% according to FactSet data.
Alphabet Slips as $77.1 Billion AI Gain Distorts Earnings
Alphabet's stock slipped despite strong quarterly revenue and cloud growth, as investors focused on a significant $77.1 billion unrealized gain from equity securities that distorted earnings. The company is heavily investing in AI infrastructure, with projected 2026 capital expenditures reaching up to $205 billion, indicating a major commitment to the AI arms race. However, the stock is currently trading nearly 35% above its GF Value, suggesting that market expectations for continued strong execution are very high, and temporary investment gains will not sustain its valuation.
Butensky & Cohen Financial Security Inc. Decreases Holdings in Alphabet Inc. $GOOGL
Butensky & Cohen Financial Security Inc. reduced its stake in Alphabet Inc. (NASDAQ:GOOGL) by 6.8% in the second quarter, selling 1,483 shares. Despite this reduction, Alphabet remains a significant holding for the firm, constituting 1.8% of its portfolio and its seventh-largest position. The article also highlights that other institutional investors increased their positions in Alphabet, while the company's strong operating performance, especially in Google Cloud, and AI demand continue to support a "Buy" rating from analysts.
Alphabet Stock Surged When Its AI Spending Found Customers
Alphabet's stock significantly outperformed the market and its peers over the past year, returning 69.6% compared to the S&P 500's 20.3%. This surge is attributed to its AI spending finding customers, particularly in Google Cloud, which saw 82% revenue growth and improved operating margins. Despite increased capital expenditure and pressure on free cash flow, the company's strategic investments in AI are proving successful.
Alphabet raises $3.9 billion in inaugural Australian dollar bond
Alphabet has successfully raised A$5.5 billion ($3.89 billion) through its first Australian dollar debt issuance, marking it as the first AI hyperscaler to tap into this market. The offering, consisting of 3-, 5-, 10-, and 20-year bonds, saw investor bids exceeding A$18 billion, demonstrating strong demand for tech company debt. This move by Alphabet, following its recent negative free cash flow, highlights a growing trend among global tech giants to diversify funding sources beyond traditional cash reserves to finance massive AI investments.
Dow Jones Tech Titan Alphabet Offers New Buy Point, But These Key Flaws Remain
As the Dow Jones Industrial Average and other stock indexes showed gains on Wednesday, Alphabet (GOOGL), SK Hynix (SKHY), Amphenol (APH), and Astronics (ATRO) were highlighted as stocks to watch. Despite a weakening S&P 500 and Nasdaq composite on Tuesday, the article suggests that traders using Investor's Business Daily's IBD Methodology should proceed with caution when investing capital. The focus is on Alphabet potentially offering a new buy point, alongside an acknowledgment of remaining flaws.
Marvell gives Google option to buy $12.2 billion stake in custom chip deal
Marvell Technology will partner with Google to develop custom chips for Google's AI infrastructure, offering Google the option to purchase up to a $12.2 billion stake in Marvell. This deal enables Google to diversify its custom chip partnerships beyond Broadcom and secure alternatives to Nvidia's GPUs for AI inference, capitalizing on the increasing demand for in-house chips. The warrant's full exercise is contingent on Google meeting specific purchasing targets through 2033.
Broadcom shares drop 2.3% after Marvell announces TPU deal with Google
Broadcom (AVGO) shares experienced a 2.3% decline following Marvell (MRVL) Technology's announcement of a deal with Google for its Tensor Processing Units (TPUs). This development suggests a competitive shift in the AI hardware market, impacting investor confidence in Broadcom. The news was initially reported by TheFly.
In the hunt for AI capex financing, Alphabet turns to the Aussie dollar
Alphabet is seeking diverse financing for its increased AI capital expenditure, which has risen to $205 billion. Following bond issues in sterling and Swiss francs, the company has now issued AUD 5 billion (approximately $3.9 billion) in Australian dollar bonds across various tenors. This move highlights hyperscalers' efforts to fund significant investments in AI infrastructure.
Greg Abel Just Bet $17 Billion on This 1 Stock
Greg Abel, Warren Buffett’s successor at Berkshire Hathaway, made a significant investment of $17 billion in Alphabet (NASDAQ:GOOGL) during Q2 2026, making it a core holding. This move, detailed in Berkshire’s 13F filing, highlights Abel's focus on AI infrastructure through Google Cloud, alongside other strategic adjustments like trimming Bank of America, re-entering the airline sector via Delta, and showing optimism in homebuilders D.R. Horton and Lennar. The Alphabet investment is seen as a long-term play, acquiring a dominant cash-generating business at a market multiple, similar to the early Apple thesis.
Billionaire Investor Bill Ackman Just Sold Alphabet and Piled Into Another Tech Stock That's Up 65,100% Since Its IPO
Billionaire investor Bill Ackman's Pershing Square Capital Management recently sold its entire stake in Alphabet and invested heavily in Netflix. This move comes after Alphabet's strong performance, with Ackman stating that the sale was not a bet against the company but a strategic reallocation of capital towards Microsoft and now Netflix. Pershing Square acquired over 13 million shares of Netflix, valuing the position at over $934 million, after the streaming giant's stock had fallen significantly from its all-time high.
SA analyst upgrades/downgrades: GOOG, CRWD, PLTR, PYPL
This article details recent analyst rating changes for several major tech companies. Alphabet (GOOG) and PayPal (PYPL) received upgrades to Buy, with Alphabet's upgrade attributed to Cloud growth and PayPal's to M&A potential. Conversely, CrowdStrike (CRWD) and Palantir (PLTR) were downgraded due to concerns over stretched valuations.
Top Investors Warn Google Is Now “A Very Different Company” Than It Was 2 Years Ago
Top investors Daniel Mahncke and Shawn O’Malley expressed concerns about Alphabet (NASDAQ:GOOGL), noting a significant shift in the company over the past two years. Google reported its first-ever negative free cash flow quarter, with capital expenditures doubling and long-term debt surging to $98.2 billion. While Google Cloud is experiencing significant growth, the massive AI buildout has led to suspended stock buybacks and a substantial increase in debt, raising questions about the company's future financial health despite its strong fundamental growth in some areas.
Alphabet eyes inaugural Australian dollar bond, bookrunner’s message says By Reuters
Alphabet is reportedly planning its first Australian dollar bond issue, with investment banks mandated to arrange the transaction. The U.S. tech giant is considering issuing 3-, 5-, 10-, and 20-year bonds, with the proceeds likely supporting its substantial AI spending, which led to negative free cash flow in its most recent quarter. This move reflects a broader trend of global tech companies seeking diversified funding in local currency markets to finance AI investments, as "Kangaroo" bond sales have hit record highs this year.
Berkshire's Alphabet stake, Meta goes back to court, Europe's champagne problems and more in Morning Squawk
This Morning Squawk newsletter details key financial news for investors. Berkshire Hathaway significantly increased its Alphabet stake and other positions, while Meta faces new legal challenges in California. The article also covers Lamborghini's new hybrid, changes in the television industry, and how climate change is affecting European champagne production.
Alphabet's Reported $112 Billion Profit Included a $94 Billion Paper Gain From SpaceX. Here's What the Company Actually Earned.
Alphabet reported a net income of $112.2 billion in Q2, largely inflated by a $94 billion unrealized gain from its investment in SpaceX. This paper gain, stemming from SpaceX's recent IPO, significantly distorted Alphabet's actual operating profitability. Excluding this gain, Alphabet's net income would have been closer to $18 billion, representing a 35% year-over-year decline in EPS, highlighting the importance for investors to focus on core operational metrics like operating income and free cash flow rather than volatile investment portfolio valuations.
Meta vs. Alphabet (GOOGL): Which Growth Stock Are U.S. Politicians Buying?
U.S. politicians showed varied trading activity in Meta Platforms (META) and Alphabet (GOOGL) during June, with Meta seeing two reported buys and Alphabet experiencing more sales than purchases over three months. While Meta has a "Positive" politicians' trading signal, Alphabet has a "Negative" signal despite some buys. Both stocks maintain a "Strong Buy" consensus from Wall Street analysts, with Meta showing higher upside potential.
Sergey Brin Wants Google to Double Down on Gemini. What That Means for GOOGL Stock.
Sergey Brin, co-founder of Google, is pushing for increased focus on the company's proprietary LLM Gemini, leading to executive changes within Google's AI unit. Despite concerns over rising AI spending, Alphabet reported strong Q2 revenues, with Google Cloud being a significant growth driver. Analysts maintain a "Strong Buy" rating for GOOGL stock, projecting a significant upside from current levels.
Waymo gets regulatory approval to scale up robotaxi service across California, enter 2 new markets
Waymo, the Alphabet-owned company, has received regulatory approval from the California Public Utilities Commission (CPUC) to significantly expand its autonomous ride-hailing service across California. This expansion will scale up existing operations in the San Francisco Bay Area and Los Angeles, and introduce robotaxi services to Sacramento and San Diego. Although a timeline for launch in the new markets was not provided, Waymo stated that the expansion would be gradual and guided by its safety framework.
Tesla vs. Alphabet: The Better Investment May Surprise You
This article compares the Q2 2026 earnings reports of Tesla and Alphabet, highlighting their contrasting approaches to AI investments and financial performance. While both companies increased revenue, Alphabet demonstrated strong operating margins and successful AI monetization through Google Cloud, whereas Tesla's automotive margins collapsed due to heavy AI infrastructure spending. The author concludes that Alphabet presents a more compelling investment due to its current profitability from AI, despite both companies showing negative free cash flow.
Amazon and Alphabet Both Cost More on Next Year's Earnings Than on Last Year's
Amazon and Alphabet both appear to have higher price-to-earnings ratios for the upcoming year compared to the past year, which typically indicates an expected decline in profits. However, this article explains that the discrepancy is due to significant non-operating income, such as gains from investments, inflating their past year's earnings. The underlying operating businesses for both companies remain strong, with Alphabet potentially offering a better value due to its accelerating cloud business and lower forward P/E ratio.
Amazon and Alphabet’s Profits Reveal Circular Nature of A.I. Boom
Amazon and Alphabet's recent profits have been heavily bolstered by their investments in other AI companies, rather than solely their core businesses. This trend highlights a circular dynamic where AI companies' success is increasingly interdependent, posing a potential vulnerability for the broader stock market. Over 70% of Alphabet's net quarterly income came from investments, primarily SpaceX, and 65% of Amazon's net income stemmed from its stake in Anthropic.
Alphabet: This Is How YouTube Changes Business And Society (NASDAQ:GOOG)
Alphabet (GOOG) is rated a Buy due to its robust ecosystem integration and sustained cash flow generation. The company's Search business grew 17% YoY, Google Cloud surged 82% YoY with a substantial backlog, and YouTube ads increased 13% YoY. YouTube's strategic use of AI, creator monetization, and cross-platform integration is driving multi-industry disruption and strengthening its competitive moat, with a conservative DCF model suggesting a 33.9% undervaluation despite macroeconomic, CapEx, and ad competition risks.
Berkshire Bought Alphabet Stock in Q2—and Maybe Microsoft Too
Berkshire Hathaway was very active in the second quarter, purchasing over $23 billion in stocks. This included a significant investment of at least $10 billion in Alphabet stock. The article also speculates on a potential investment in Microsoft.
The Sign Before Alphabet Stock’s Surge Was Google Cloud’s Margin, Not Its Growth
Alphabet (GOOGL) stock surged 71% over the past year, primarily driven by the significant improvement in Google Cloud's operating margin, rather than just its revenue growth. The article highlights that Google Cloud's operating margin nearly doubled to 20.7% before the stock's run began, while its growth rate remained consistent, indicating efficient scaling. This margin expansion, coupled with a growing backlog for Google Cloud and Alphabet's capacity build, signaled a re-rating opportunity for the stock that was evident in financial reports well in advance.
Weitz Investment trims Alphabet Class C stake by 58K
Weitz Investment Management, led by Wallace Weitz, has reduced its stake in Alphabet Inc. Class C (GOOG) by 58,650 shares. TipRanks' AI Analyst, Spark, rates GOOG as "Outperform" due to strong financials and AI/Cloud momentum, despite near-term cash flow pressures and bearish technical signals. Alphabet Class C has a YTD price performance of 9.45% and a current market cap of $4363.2 billion.
Gemini app becomes Google’s fastest-growing consumer product ever: CEO Sundar Pichai shares ‘thank you’ m
Google's Gemini mobile app has achieved a significant milestone, surpassing 1 billion monthly active users and becoming the company's fastest-growing consumer product in its history. CEO Sundar Pichai announced this on social media, highlighting Gemini as Google’s 14th product to reach this user count. The app has seen a rapid shift towards voice and visual interactions, with 63% of users engaging via voice commands and a growing adoption of real-time visual assistance through Gemini Live.
Alphabet’s AI Story No Longer Runs Through The Business That Funds Everything Else
Alphabet's AI narrative has shifted from its advertising division to its underlying infrastructure, particularly its TPU systems and Cloud services. While Google Services (advertising) continues to grow and fund the AI build, the company is significantly increasing capital expenditure for AI, leading to negative free cash flow in Q2 2026. This pivot signifies Alphabet's transformation into a capital-hungry AI supplier, with its Cloud operating margin of 35.6% being a key indicator of the strategy's success.
Alphabet Stock Drops 1.5% as DeepMind Turnover Deepens
Alphabet's stock dropped 1.5% following significant leadership changes at Google DeepMind, including the departure of CEO Demis Hassabis and veteran AI scientist Jeff Dean. This comes as Alphabet increases its capital spending forecast to $195-$205 billion for 2026, driven by explosive growth in Google Cloud revenue and a push for AI domination. Investors are now paying a premium for AI leadership, making any disruption or slow growth a potential concern for the stock's valuation.
Here’s How Much You Would Have Made Owning Alphabet Stock In The Last 20 Years
Alphabet (NASDAQ: GOOGL) has significantly outperformed the market over the last 20 years, achieving an average annual return of 19.73%. An initial investment of $100 in GOOGL stock two decades ago would now be worth $3,639.52. This demonstrates the powerful impact of compounded returns on wealth growth over time.
This AI Cloud Stock Is Obliterating Amazon, Microsoft, and Alphabet With a 1-Year Return of 275%. Is It Still a Buy?
DigitalOcean (NYSE: DOCN), a $14 billion cloud company, has significantly outperformed tech giants like Amazon, Microsoft, and Alphabet with a 275% return over the past year, primarily driven by its AI-Native Cloud platform targeting small and midsized businesses. The company's revenue growth is accelerating, with a 29% increase in Q2 and $234 million in AI-specific annual recurring revenue, leading management to forecast over 50% revenue growth for 2027. Despite a higher current price-to-sales ratio, its forward P/S ratio based on 2027 guidance suggests it could be a bargain for long-term investors.
Crake Asset Management boosts Alphabet Class C stake by 411,000 shares
Crake Asset Management LLP, led by Richard Walker, has significantly increased its holdings in Alphabet Inc. Class C (GOOG) by acquiring an additional 411,000 shares. TipRanks' AI Analyst, Spark, rates GOOG as "Outperform" due to strong financial performance, a positive earnings outlook driven by AI and Cloud momentum, despite some near-term cash flow pressures and bearish technical signals. The article also provides key financial data for GOOG, including YTD Price Performance and Current Market Cap.
Google Stock Sputters, But These Catalysts Could Spark A Rebound
Alphabet (GOOGL) stock has retreated below its 10-week moving average after reaching an all-time high in May, following concerns about its DeepMind AI unit and competition from OpenAI and Anthropic. Despite its position on the Investor's Business Daily Leaderboard, investors are looking for new catalysts to spark a rebound. The article suggests that future developments could reignite investor confidence in the search and cloud giant.
48% of Google Cloud Revenue Next Year Could Come From Just 2 Companies That Have Still Never Turned a Profit
UBS estimates suggest that nearly half of Google Cloud's revenue next year will come from OpenAI and Anthropic, two companies that have not yet turned a profit, raising concerns about the narrow concentration of the AI boom. Analyst Ed Zitron highlights that these AI companies are not paying their bills out of existing cash flow, and their substantial losses could create a significant infrastructure demand gap for hyperscalers like Google, Microsoft, and Amazon. Despite these warnings, markets have not yet significantly punished the hyperscalers, with their stock prices largely performing well.
Berkshire Hathaway Earnings: Buffett’s Successor Just Bet $10 Billion on Google
Berkshire Hathaway, under new CEO Greg Abel, has invested approximately $10 billion in Alphabet, Google's parent company, making it one of its top five holdings. This move signifies a shift from Warren Buffett's previous tech caution and cash hoarding, as Berkshire became a net buyer of stocks for the first time in 15 quarters. While net earnings doubled and operating earnings rose, share buybacks were lower than some investors expected.
48% of Google Cloud Revenue Next Year Could Come From Just 2 Companies That Have Still Never Turned a Profit
A Bloomberg Businessweek segment featured Ed Zitron, CEO of EZ Primary Research and an AI skeptic, who claims that a significant portion of Google Cloud's revenue next year will come from two unprofitable companies, OpenAI and Anthropic. Zitron argues that the AI boom's reliance on these companies, with their substantial losses and delayed IPOs, exposes hyperscalers to a significant infrastructure demand gap. Despite market optimism, he warns that this concentration presents a sustainability problem and a potential fiduciary risk for hyperscaler shareholders.
Alphabet's Cloud Computing Business Just Posted 82% Revenue Growth. Next Quarter Could Be Even Better.
Alphabet's cloud computing division experienced an 82% year-over-year revenue climb last quarter, marking its fifth consecutive quarter of accelerating growth, with expectations for continued acceleration. The company's significant backlog of $514 billion in contracted services and substantial capital expenditures in AI data centers indicate strong future revenue potential despite short-term margin pressures. Investors are presented with a growth opportunity at a price of 17.5 times forward earnings, anticipating substantial operating income and free cash flow as these investments mature.
Alphabet's Cloud Computing Business Just Posted 82% Revenue Growth. Next Quarter Could Be Even Better.
Alphabet's cloud computing division experienced an 82% year-over-year revenue growth in the last quarter, marking its fifth consecutive quarter of accelerating growth. This surge is attributed to strong demand for its Google Workspace and enterprise solutions, driven by AI integration (Gemini) and growing sales of custom AI accelerators (TPUs). The company's substantial capital expenditures in data centers and a large backlog suggest continued strong growth, despite potential near-term margin pressures from massive upfront investments.
Sundar Pichai's Alphabet Has Grown Google Cloud Revenue 82% Year Over Year. Here's Why That Growth Rate Justifies the Company's Capex Bet.
Alphabet's Google Cloud revenue surged 82% year over year in the second quarter, reaching $24.8 billion, with operating income more than tripling. This significant growth, driven by AI integration and custom silicon (TPU), justifies Alphabet's increased capital expenditure (capex) guidance of $195 billion to $205 billion for 2026. The strong financial performance and backlog validate the company's investments in AI infrastructure, positioning it for continued leadership in cloud computing despite short-term pressure on free cash flow.
Even Without Alphabet and Amazon, the S&P 500 Just Posted Its Biggest Earnings Beat Ever
The S&P 500 recently achieved its largest earnings beat on record, with companies surpassing analyst estimates by 29.2%. While this impressive figure is partially boosted by accounting gains from Alphabet and Amazon, the underlying earnings growth and profitability remain strong, especially driven by the AI sector. The article highlights that despite high valuations, the widespread operational growth fueled by AI infrastructure spending indicates a healthy market.
Sundar Pichai's Alphabet Has Grown Google Cloud Revenue 82% Year Over Year. Here's Why That Growth Rate Justifies the Company's Capex Bet.
Alphabet's Google Cloud revenue surged 82% year over year in the second quarter, reaching $24.8 billion, with operating income more than tripling to $8.8 billion. This impressive growth, driven by an integrated AI portfolio including custom chips and Gemini models, justifies Alphabet's increased capital expenditure guidance of $195 billion to $205 billion for 2026. Despite negative free cash flow, robust operating cash flow and profitability demonstrate the company's ability to self-fund its AI infrastructure, validating its strategy for cloud leadership.
