The numbers from the earnings report of the four largest hyperscalers show that AI is the engine driving growth across the world’s largest tech companies.
Starting with Alphabet (GOOGL), data from the earnings report that ended on March 30th shows that Search advertising revenue grew 19%, with the company pointing directly to AI features like AI Overviews and AI Mode as drivers of engagement and repeat usage.
Meanwhile, Google Cloud revenue surged 63% to more than $20 billion for the first time, while backlog nearly doubled quarter over quarter to over $460 billion. Gemini Enterprise is scaling quickly, with paid users growing 40% in a single quarter.
Looking at Meta (META), the social media giant now expects 2026 capital expenditures to reach between $125 billion and $145 billion, an increase from prior guidance, driven by higher component costs and the need to expand data center capacity for future AI demand.
The company also says Meta AI sessions per user increased by double-digit percentages following the launch of its Muse Spark model.
Turning to Microsoft (MSFT), CEO Satya Nadella says its AI business has now surpassed a $37 billion annual revenue run rate, up 123% year over year. Microsoft Cloud revenue reached $54.5 billion, up 29%, while commercial remaining performance obligations climbed 99% to $627 billion, indicating that the enterprise demand pipeline remains extraordinarily robust.
As for Amazon (AMZN), the company says AWS is growing 28%, its fastest pace in 15 quarters, on what is already the largest cloud base in the market. Its custom chips business has crossed a $20 billion revenue run rate, growing at triple-digit rates, as customers look for alternatives to traditional GPU supply.
The company also says it delivered more than 2.1 million AI chips over the past year, including a significant share of Trainium processors, and plans to deploy more than one million NVIDIA GPUs starting in 2026.
Despite the staggering numbers reflecting growth in hyperscaler AI business, investors have not reacted with exuberance. Alphabet is mostly flat following Wednesday’s trading session, valued at $349 per share.
META is also flat at $669 per share. MSFT is down 1.12%, trading at $424.46, while AMZN is up 1.29% at $263.
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