Cloud Computing

Tencent’s Q3 2025 earnings exceeded expectations with a 15% revenue increase, driven by AI advancements in advertising and gaming. Revenue reached 192.9 billion yuan, with operating profit at 63.6 billion yuan. Domestic gaming grew 15%, boosted by successful game launches, while international gaming surged 43%. Tencent is investing heavily in AI, including its HunYuan model, and expanding into European cloud computing, aiming to compete with industry leaders. Year-to-date, Tencent’s stock has increased 56.7%.

Google’s Private AI Compute is a new cloud-based system aiming to balance powerful AI with user privacy by replicating on-device data security within a cloud environment. Similar to Apple’s approach, it addresses the challenge of providing computationally intensive AI while protecting data confidentiality. The system uses Google’s infrastructure, including TPUs and TIEs, encrypted connections, and Zero Access assurance to secure data processing. It enhances features like Magic Cue and Recorder, offering faster, more personalized results. Google intends Private AI Compute to unlock a new generation of privacy-centric AI tools.

Majestic Labs, founded by ex-Meta and Google silicon executives, secured $100M to disrupt cloud computing. Their novel chip design architecture boasts 1000x the memory of typical servers, potentially replacing ten racks with one and significantly reducing data center costs. Targeting hyperscalers and enterprises deploying AI, their technology consolidates server functionality, cutting power consumption and improving energy efficiency. Prototypes are expected in 2027. The founders aim to solve memory bottleneck issues for AI workloads.

Nvidia dominates the AI chip market, but Google is emerging as a silicon contender with its Tensor Processing Units (TPUs). Google’s Ironwood, its seventh-generation TPU, delivers a fourfold performance increase and is targeted at demanding AI workloads. AI startup Anthropic plans to deploy 1 million Ironwood TPUs. Google’s TPUs offer efficiency advantages and drive cloud growth. While Amazon and Microsoft are developing custom chips, Google leads in TPU deployment at scale, with potential for significant cloud market impact. Google is even exploring space-based solar power for TPUs.

Amazon is building its first wholly-owned subsea fiber-optic cable, Fastnet, connecting Maryland to Ireland. This initiative aims to bolster infrastructure for cloud computing and AI, addressing increasing demands for bandwidth, low latency, and cost-effectiveness. Fastnet will have a capacity exceeding 320 Tbps and is projected to be operational by 2028. This strategic move provides Amazon with greater control over its network, enhances resilience, and reduces reliance on third-party providers, reflecting a broader industry trend of tech giants investing in subsea cables.

Amazon secured a $38 billion deal with OpenAI for AWS infrastructure access, diversifying OpenAI’s cloud services beyond Microsoft. This fueled Amazon’s stock to a record high close. Microsoft also benefited from a US license to export Nvidia AI chips to the UAE, boosting Nvidia’s shares. While tech stocks lifted indices, many S&P 500 stocks closed lower, signaling narrow market participation. Palantir’s positive results were overshadowed by a stock decline. Markets predominantly advanced, but risks to global equities are mounting.

Cloud computing firm Lambda has secured a multi-billion dollar deal with Microsoft to provide AI infrastructure, driven by surging demand for AI services. The agreement involves deploying tens of thousands of Nvidia GPUs. Lambda CEO Stephen Balaban cited widespread adoption of AI services like ChatGPT and Claude as key drivers. This partnership strengthens the existing relationship between Lambda and Microsoft, bolstering Microsoft’s AI cloud offerings. Lambda will utilize NVIDIA GB300 NVL72 systems. Lambda also plans to launch a new AI factory in Kansas City by 2026, reflecting long-term growth in AI infrastructure.

Amazon has rebounded strongly, outperforming other “Magnificent Seven” stocks. A strong earnings report and a $38 billion cloud deal with OpenAI fueled a significant stock surge. OpenAI will leverage AWS cloud infrastructure, reducing reliance on Microsoft Azure. This partnership highlights AWS’s resurgence, with cloud growth accelerating to 20%. Amazon’s investments in Nvidia GPUs and custom silicon position them well for the growing AI demand, despite OpenAI adopting a multi-cloud approach including renewed commitments from Microsoft, Google and Oracle.

Amazon shares soared after a strong Q3 earnings report, driven by a resurgent Amazon Web Services (AWS). AWS revenue grew 20% year-over-year, exceeding expectations and signaling successful capitalization on AI demand. CEO Jassy’s confident outlook alleviated investor concerns about competition from Azure and Google Cloud. AWS’s robust $200 billion backlog and increased capital expenditure, particularly in AI infrastructure, position it for sustained market leadership as AI workloads drive future cloud spending.

Amazon Web Services (AWS) reported a strong 20% revenue increase in Q3, reaching $33 billion and exceeding expectations. Despite facing growing competition from Google Cloud and Microsoft Azure, AWS’s operating income rose 9% to $11.4 billion, contributing significantly to Amazon’s overall profit. Amazon’s recent $11 billion AI data center, Project Rainier, and its investment in Anthropic highlight its focus on AI cloud services amid intensifying competition, spurred by significant partnerships between other tech giants and cloud providers.