Azeem Azhar

Analysts reckon that Amazon's AWS grew more than 20% to about $33 billion in revenues.

Google Cloud growing faster.

It's the smallest of the three at about $15 billion in revenues.

And Microsoft's Azure

grew by some 40%.

And we reckon a large part of that, as it was with Amazon and Google, AI workloads.

That is running their infrastructure to serve AI companies like OpenAI, like Anthropic, but more importantly, enterprises all over the world who are increasingly building AI services internally.

It's not just about the data centers and the hyperscalers.

Chip companies are seeing enormous orders.

I'm not sure many people would have predicted that Anthropic, a three-year-old startup, would buy a million AI processing units called TPUs from Google.

And on that subject of Google, they said that 150 of their enterprise customers were using more than 1 trillion tokens from their LLM systems, which sounds like quite a lot.

It's even more than I managed to use.

But those tokens are actually pretty cheap, so the dollar value is not as big as it might sound.

Set against all of this, the tech giants will collectively invest, as we know, roughly $400 billion this year in the hardware to deliver AI.

They'll invest more next year, and they'll invest more the year after that.

I think it's telling that Microsoft's boss Satya Nadella is talking about planet scale token factories.

So is this all crazy talk?

Is this exuberance?

Is this excitement running ahead of where we are?

Are we building capacity that we will never use?