Big Three AI Infrastructure Capex Guidance Jumps to $220B Amid Cloud Revenue Beats

Amazon, Microsoft, and Google Cloud exceed Q2 revenue expectations. Combined AI infrastructure capex guidance rises significantly, with Amazon raising targets to $220B.

Woofun AI reports that Amazon, Microsoft, and Google Cloud delivered Q2 cloud revenues surpassing market forecasts. Amazon’s AWS revenue climbed 37% year-over-year to $42.23 billion, marking the fastest growth since 2021, while total company revenue exceeded $200.6 billion for the first time with operating profit at $16.6 billion. Microsoft’s fiscal Q4 revenue rose 18% to $90.007 billion, with Azure growth accelerating to 43% from 40% in the prior quarter. Alphabet’s Google Cloud revenue surged 82% to $24.8 billion, alongside a contract backlog expansion to $514 billion.

Capital expenditure guidance for AI infrastructure has been substantially increased across the sector. Amazon raised its annual capex outlook from approximately $200 billion to $220 billion, directed toward data centers, servers, network equipment, and AI semiconductors. Alphabet increased its guidance to up to $205 billion, while Microsoft reported quarterly capex of $41 billion, a 69% year-over-year increase. Amazon CEO Andy Jassy stated that the $220 billion investment remains insufficient to satisfy current customer AI demand, a condition expected to persist into the following year. Alphabet CEO Sundar Pichai noted that 90% of Fortune 100 companies are utilizing Gemini Enterprise, driven by strong demand for AI infrastructure and solutions.