Forget Chatbot Benchmarks. Google Just Found 1,000 Ways Into Microsoft’s Best Customers.

Anthropic secured $517B in compute commitments, primarily with NVIDIA (NVDA), ahead of its IPO. NVDA reported $96B in Q2 revenue, up 106% YoY, and guided Q3 to $108B. AMZN, GOOGL, and MSFT committed over $300B and $30B respectively for NVIDIA-powered capacity. NVDA's stock is up 17.32% YTD but down 5.13% over the past week.

Alphabet's CEO Sundar Pichai reported 82% year-over-year revenue growth for Google Cloud, with a backlog of $514 billion. Search remains the primary revenue driver, contributing 55% of total revenue. Cloud's operating margin reached 35%, but it still represents a smaller share of overall profits. Pichai highlighted long-term growth potential for both Search and Cloud.

Nvidia (NVDA) and Alphabet (GOOG, GOOGL) are leading the Dow's AI-driven growth. Nvidia reported 70% expected revenue growth for fiscal 2028, while Alphabet's Google Cloud saw 82% revenue growth in Q2. Nvidia's valuation is lower despite higher growth, and Alphabet's AI turnaround is notable. Both are key players in the AI investment cycle.

Google, a subsidiary of Alphabet (GOOG, GOOGL), has signed a 396-MW power purchase agreement with Fervo Energy (FRVO) for clean geothermal energy. The deal, the largest of its kind, will supply Google's data centers and validate Fervo's Enhanced Geothermal Systems technology. Fervo aims to deliver power by 2028, with a total potential capacity of 1 GW by 2030. The partnership highlights Fervo's role in meeting AI power demands and its growth prospects.

Microsoft (MSFT) shares rose 20% since July, driven by AI investments, particularly Azure. Azure revenue grew 42% to $29.42B in Q2, with guidance of 44-45% for the current quarter. However, capital expenditures reached $115.9B in FY26, raising sustainability concerns. Hedge fund ownership dipped slightly in Q2, with a forward P/E of 24.81.

Asha Sharma, new head of Xbox, is implementing a strategy of radical transparency to revive Microsoft's gaming business. Xbox revenue is around $23 billion but declining, with profit margins at 3%. Sharma has announced a major restructuring, including 3,200 job cuts and spinning off four studios. She is focusing on key franchises like Halo and The Elder Scrolls, according to The Wall Street Journal.