OpenAI’s $1T infrastructure push spotlights Microsoft and major cloud providers ahead of earnings. With AI demand surging, analysts expect Amazon, Google, and Microsoft to justify record spending as investors seek clear returns.
00:00It's Benzinga bringing Wall Street to Main Street.
00:03OpenAI's massive infrastructure bets are shining a spotlight on Microsoft and the other cloud hyperscalers as earnings week arrives, according to CNBC.
00:12Valued at roughly $500 billion, OpenAI has announced about $1 trillion worth of future infrastructure commitments via partnerships with NVIDIA, Oracle, and Broadcom.
00:23Analysts caution that the bottleneck is now compute capacity and power, not demand.
00:29Investors expect the major hyperscalers reporting this week to present bold but disciplined AI investment strategies as their combined capital spending is projected to rise 24% to nearly $550 billion next year.
00:42Analysts say Amazon, Microsoft, and Google must show cloud revenue growth as massive AI spending has yet to deliver clear returns.
00:50Analysts are watching how Microsoft's co-pilot boosts business growth, Google's AI strengthens search and ads, and Meta's AI improves ad targeting.
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