Alphabet's Cloud sales rose 82% to $24.8 billion, and its backlog reached nearly $514 billion. It is giving up some Cloud sales for AI, but the story does not say how much, and new computing capacity is hard to secure.
Giving DeepMind first call on computing power may help Alphabet build stronger AI models, and its Cloud sales and contracted work are growing. But it gives up some Cloud sales, and customers may struggle to get computing power through 2027. Alphabet plans $195 billion to $205 billion in building spending. The story does not say how much sales it gives up or what returns that spending brings.
SpaceX reported $14.6 billion in quarterly sales, beating expectations, and its Super Intelligence division made $7.6 billion, up 830% from a year earlier. Google agreed to pay SpaceX $920 million each month for computing, and SpaceX says new computing equipment pays for itself in under a year.
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