While Microsoft Recently, with the establishment of some leases information center, both supported Amazon(NASDAQ: Amzn) and Alphabet(NASDAQ: Googl)(NASDAQ: GOOG) Get ready to go full steam ahead.
Microsoft still plans to spend $ 80 billion on infrastructure Capital costs (CAPEX) Artificial Intelligence (AI) This fiscal year, but the financial year ends in June, today is a few months. However, some early staged projects stop, probably because of its needs and AI partner Openai moved in different directions. In turn, Openai is looking to build their own; The project, which has planned to spend $ 500 billion in the next few years, is part of the Stargat.
However, the Amazon and the alphabet are both planning to spend great in 2025. The alphabet will spend $ 75 billion this year, the Central CAPEX will spend $ 100 billion this year. The potential impact of tariffs does not change their plans.
This month, Amazon CEO Andy Jassy AI called the Amazon CEO Andy Jassy AI “One-time investment of everything we know once a life investment” and “said almost any technology.”
Meanwhile, the next ’25 conference in Las Vegas in Google Cloud, the alphabet CEO Sundar Pichai said, “The opportunity with AI,” he said.
The date shows that Amazon and the cost of the alphabet will pay. Amazon has a great spending history in CAPEX to set up its own business. He set up a warehouse and logistics network from scratch to accelerate the delivery of the goods he sold. It was expensive but helped the company enter e-commerce Behemoth today.
Then it turned and made the same thing as the same thing as the cloud computing, mainly by inventing the infrastructure-a-service industry with Amazon Web Services (AWS), which is now the most profitable business. Many analysts first questioned the company’s spending plans for the company’s surveys and doubted it would be a profitable work.
The alphabet, as well as Google Cloud business expenses are more expensive and preliminary losses. However, the fruits of this work, Google cloud segment, the income of income from 142% to $ 2.1 billion, the income of the income of the infection began to shine in the last quarter.
Analysts in 2017 Golden man sachs “A historical connection between the accelerated investment periods and income order” in Amazon. Also, Amazon’s shares came out after an intensive investment period.
Picture source: Getty Images.
In his letter to shareholders, Amazon data center has an attractive free cash flow (FCF) and the invested capital (ROIC) profiles (ROIC), and these assets are 15-20 years or more. In addition, the AI infrastructure price will fall below, especially the outside, he predicted more chip options Nvidia. Amazon, today compared to model education, is also waiting to be the largest driver of the EI spending.
With the forecasting to be increasingly important, both Amazon and alphabet developed their own special AI chips designed specifically for both the alphabetical and feature. Amazon has a better price of 30% to 40% compared to the current graphics processing sections of the new Trulium2 chip (GPU). One of the biggest goals is more expensive for customers, which will result in more common AI.
Meanwhile, the alphabet only seventh generation AI chip, presented the iron tree. The new chip is developed for “Age” with increasing calculation power and memory power. This is the first chip designed specifically for the alphabetical effect and “it was created to manage the active generation of active and interpretation. This is the energy efficient chip so far.
The Amazon and the alphabet are investing in AI, and in a long period of time, these investments must pay by slow down the potential cost of Microsoft. The requirements for cloud computing and AI services require strong growth driving, as these companies help customers create their AI models and applications and launch AI workloads on platforms.
To help the EI infrastructure costs, both companies also took place in the preparation of special AI plugs. As the AI progresses to the conclusion, both companies reduce the total value with the development of special plugs, which consumes less power and managing these tasks.
AI also performs the rest of their enterprises. Amazon uses AI to be more efficient in logistics and warehouses and giving better product recommendations to their customers. The alphabet, with the latest Gemini 2.5 model, quickly took great steps caught in the AI race; It’s like a video generator, such as the search and advertising institutions, some groundbreaking EU tools, for example, VEO 2.
Both shares with the latest market sales are trading in attractive assessments. If there is any sign of history, both will have long-term AI winners, but also make strong long-term investments.
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John McKey, the All Foods market, which is a subsidiary company, is a member of the Board of Directors of Motley Soop. An executive President Suzanne Frey in the alphabet is a member of the Board of Directors. Geoffrey Seiler There are positions in the alphabet. Motley recommends Fool, Alphabet, Amazon, Goldman Sachs group, Microsoft and NVIDIA and recommend. Motley Foox recommends the following options: Long Time 2026 $ 395 Calls Microsoft on January 2026 $ 405. Motley Fool has a Disclosure Policy.
