AI Profits Surge, $70B Capex Surge Raises Investor Concerns, Automated Skin Exams | Diet TBPN

The episode recaps Q1 earnings from Google, Microsoft, Amazon, and Meta—described as a rare "quad kill" alignment—emphasizing strong cloud revenue growth that justifies massive AI capex increases, alongside scattered AI news like job market debates and emerging tools.

Earnings Breakdown: Google and Microsoft

Google delivered standout results, with stock up 10%. Core search and other revenue hit $60.4 billion, up 19% year over year, disproving fears that AI chatbots would erode it. Google Cloud revenue reached $20 billion, up 63%, with operating income at $6.6 billion and backlog nearly doubling to over $460 billion—more than half recognizable in the next 24 months. This positions Google as a full-stack AI play, blending search durability and infrastructure demand.

Microsoft showed solid execution on enterprise AI, though stock dipped 2%. Revenue was $82.9 billion, up 18%, beating estimates. Azure grew 40%, but Copilot added just 5 million seats to reach 20 million out of 450 million Microsoft 365 paid seats—progress, but slow relative to the base. No major teases for next-gen Gemini models. The OpenAI partnership evolved: Azure lost exclusivity (OpenAI models now on AWS), hurting sales pitches to AWS-locked customers but benefiting Microsoft's equity stake via OpenAI growth. A clean renegotiation removed the AGI clause, extending ties to 2032 focused on IP sharing.