THIS WEEK IN AI: Massive Quarterly Earnings, Anthropic's Project Deal, Cursor SDK

Four of the five most valuable companies in the world reported earnings within a 19-minute window yesterday, and the numbers were staggering enough to force a serious reassessment of whether we're in an AI bubble. Google's earnings per share came in 94% above Wall Street expectations — not a typo. Every major cloud business reported revenue increases averaging 50%. Google alone has $462 billion in back orders for cloud compute — orders already locked in, not projections. And the CEOs of both Google and Amazon said the same thing: they are compute-constrained. They cannot meet demand. The question of whether there's real customer appetite for AI infrastructure appears to have been answered decisively.

The Cloud Giants Are Printing Money

Google's earnings report was the most dramatic. Their cloud revenue hit $20 billion in the last quarter, up 63% year-over-year. CEO Sundar Pichai said on the call, "We are compute constrained in the near term. Our cloud revenue would have actually been higher if we were able to meet the demand." Google's CapEx guidance for next year is $180–190 billion — more than Coca-Cola's entire annual revenue. And Pichai explicitly guided that 2027 CapEx will "significantly increase" compared to this year, which is already a record.