00:00Amazon, Meta, Microsoft, Google, all reporting quarterly earnings in a 71-second window,
00:05and they're all telling the same story.
00:08AI demand is exploding, and it's driving a massive spending race.
00:12CapEx, that's the money going into data centers and chips.
00:15Microsoft's CapEx, around $190 billion this year.
00:19Alphabet planning, $180 to $190 billion.
00:23Meta raising its guide for CapEx to a range of $125 billion to $145 billion,
00:29and Amazon spending $44 billion in just one quarter,
00:33and $151 billion over the past year on infrastructure.
00:36So what's happening?
00:37Amazon AWS revenue, almost $38 billion, up 28%.
00:41Fastest growth in over three years, driven by commits from OpenAI and Anthropic.
00:47Microsoft Azure growth, around 40%.
00:49Demand is so strong, the company says it still can't keep up.
00:53It doesn't have enough capacity.
00:55Google Cloud revenue was $20 billion, up 63%, with a backlog over $460 billion,
01:02showing demand is building pretty fast.
01:05Meta had revenue of $56 billion in the quarter, gone up 33%.
01:09But the next quarter guided to a range of $58 to $61 billion, kind of in line with consensus.
01:16AI is already improving ads.
01:19And Mark Zuckerberg on the call highlighted the Muse Spark model as improving the ad business.
01:24So across all four, bottom line, AI is no longer the question.
01:28The real race is about who can build infrastructure fast enough to meet demand.
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