Google Cloud surpasses $10 billion revenue, threatening Amazon AWS; neutral.

From Nasdaq: 2024-07-30 06:50:00

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is known for Google Search, but its Google Cloud business hit a milestone, surpassing $10 billion in revenue and generating over $1 billion in profit. This growth poses competition to Amazon (NASDAQ: AMZN) and its leading cloud service, AWS, which holds over 30% of the market share.

Despite Google Cloud’s gains, AWS remains strong with a complete AI platform, offering various products and services like chips and AI models. Amazon reported AWS reaching a $100 billion annual revenue run rate in the first quarter. CEO Andy Jassy expressed confidence in AWS dominating the AI market.

While Google Cloud and others may see growth in AI, AWS is poised to maintain its position with substantial AI revenue growth and ongoing innovations. Both companies are expected to thrive, offering optimism for Amazon and its long-term AI growth prospects.

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