Amazon expands AWS AI alongside Google's Gemini models

Key Takeaways

• Amazon and Alphabet are predicted to exceed the combined market value of Nvidia and Palantir Technologies by 2028, driven by AWS AI and Google Cloud's AI chips/Gemini models.
• Amazon needs 92 percent growth from its current $2.6 trillion valuation, while Alphabet needs 28 percent growth from its $3.9 trillion valuation to reach the projected $5 trillion combined target.
• Major tech companies, including Apple, Meta, Microsoft, and Tesla, face investor scrutiny over massive AI infrastructure spending, with hyperscalers planning over $470 billion in capital expenditures by 2026.
• Microsoft's capital spending is expected to more than double to $97.7 billion by fiscal year 2026 to support Azure AI Services.
• Meta has committed up to $6 billion to Corning by 2030 for fiber-optic cables to equip its new AI data centers, planning 30 facilities, primarily in the U.S.
• Nvidia invested $2 billion in AI hyperscaler CoreWeave to accelerate the development of over 5 gigawatts of AI data centers by 2030.
• RingCentral is shifting its focus to become an AI voice company, introducing new AI-driven communication tools and expanding its partnership with AT&T, potentially adding $65 billion to its market opportunity.
• Synthesia, an AI training company, raised $200 million in Series E funding, valuing the company at $4 billion, to develop AI agents that interact like humans.
• Andreessen Horowitz made an early investment in Dentio, a Swedish AI dental startup, as part of a $2.3 million funding round to reduce administrative work for dental clinics.
• BigBear.ai stock (NYSE BBAI) experienced a 1.7 percent drop on Friday.

Amazon and Alphabet could surpass Nvidia Palantir by 2028

Experts predict Amazon and Alphabet could be worth more than Nvidia and Palantir Technologies combined by 2028. Nvidia and Palantir together are currently valued at $4.9 trillion. Amazon, currently worth $2.6 trillion, needs to grow 92 percent to reach $5 trillion, driven by its AWS cloud AI services. Alphabet, valued at $3.9 trillion, needs 28 percent growth, fueled by Google Cloud's AI chips and Gemini models. Both companies are using AI to boost revenue and profitability in their core businesses.

Amazon and Alphabet could surpass Nvidia Palantir by 2028

Experts predict Amazon and Alphabet could be worth more than Nvidia and Palantir Technologies combined by 2028. Nvidia and Palantir together are currently valued at $4.9 trillion. Amazon, currently worth $2.6 trillion, needs to grow 92 percent to reach $5 trillion, driven by its AWS cloud AI services. Alphabet, valued at $3.9 trillion, needs 28 percent growth, fueled by Google Cloud's AI chips and Gemini models. Both companies are using AI to boost revenue and profitability in their core businesses.

Big Tech AI spending faces scrutiny before earnings reports

Major tech companies like Apple, Meta Platforms, Microsoft, and Tesla will report earnings this week. Investors are closely watching their massive spending on AI infrastructure, which reached billions in 2025. The four hyperscalers Microsoft, Meta, Alphabet, and Amazon plan to increase capital expenditures to over $470 billion in 2026. Wall Street wants to see how these large investments will lead to profits, especially as worries about an AI bubble grow. Companies must show their AI build-outs are part of a clear plan to grow revenue and keep investors happy.

Microsoft and Meta face rising AI spending before earnings

Big tech companies like Microsoft and Meta Platforms are increasing their spending on AI infrastructure, known as capital expenditures, for 2026. Microsoft's spending is expected to more than double to $97.7 billion by fiscal year 2026 to support its Azure AI Services. Meta's revenue is strong from its Family of Apps, but rising costs for Reality Labs and AI investments could impact profits. Overall, major tech companies' capital spending grew by over $45 billion. Investors are showing caution as this spending grows faster than revenue, causing P/E ratios for Microsoft and Meta to drop.

BigBear.ai stock drops 1.7 percent on Friday

BigBear.ai stock, traded under NYSE BBAI, saw a decrease of 1.7 percent on Friday. The company specializes in artificial intelligence designed for decision-making processes.

RingCentral pivots to AI voice with new AT&T partnership

RingCentral has changed its focus to become an AI voice company, introducing new AI-driven communication tools. These tools are for small and mid-sized businesses and are supported by an expanded partnership with AT&T. This shift could add about $65 billion to RingCentral's market opportunity, though some new AI products replace older ones. The company recently became profitable again and is seeing mid-single-digit revenue growth. Investors are watching how well these new AI products are adopted and how the company manages its finances.

Nvidia invests $2 billion in AI hyperscaler CoreWeave

Nvidia has invested $2 billion in CoreWeave, an AI hyperscaler. This investment is part of an expanded partnership between the two companies. The goal is to speed up the creation of over 5 gigawatts of AI data centers by 2030. Nvidia CEO Jensen Huang noted that much more funding is still needed for this large project. This collaboration aims to advance AI infrastructure development significantly.

Meta signs $6 billion deal with Corning for AI data centers

Meta will pay Corning up to $6 billion by 2030 for fiber-optic cables to use in its new AI data centers. Corning, a 175-year-old glass manufacturer, is expanding its Hickory, North Carolina facility to meet this growing demand. Corning's stock has risen over 75 percent in the last year due to high demand from major tech companies for its optical communications products. Meta plans to build 30 data centers, with 26 in the U.S., highlighting the need for a domestic supply chain. Fiber-optic cables are crucial for AI as they transmit data much faster and use less energy than traditional copper lines.

Synthesia raises $200 million for AI training at $4 billion value

Synthesia, a London-based company, successfully raised $200 million in a Series E funding round. This investment values the company at $4 billion, which is almost double its value from a year ago. Founded in 2017 by Victor Riparbelli and Steffen Tjerrild, Synthesia earned over $100 million in annual revenue in 2025. The company plans to use the new funds to develop AI agents that can interact like humans with corporate information. Existing investor GV led the round, with several other firms also participating.

Andreessen Horowitz invests in Swedish AI dental startup Dentio

Andreessen Horowitz has made an early investment in Dentio, a new AI startup from Sweden. This investment is part of a $2.3 million funding round. Dentio aims to help dental clinics by reducing their administrative work, such as answering phones and handling billing. The company was founded in 2024 by Lukas Sjögren, Anton Li, and Elias Afrasiabi. The founders saw a need for this technology after observing the administrative challenges faced by Li's mother, a dentist.

Sources

• Prediction: 2 AI Stocks Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2028
• Prediction: 2 AI Stocks Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2028
• Tech's massive AI spend is under scrutiny ahead of earnings. Here's what to watch
• Microsoft And Meta Earnings Preview: Capex Growth Looms Amid AI Investment
• BigBear.ai (NYSE:BBAI) Trading Down 1.7%
• How Investors May Respond To RingCentral (RNG) AI Voice Pivot And New AT&T Partnership
• This AI Stock Just Landed $2 Billion From Nvidia -- Is It the Next Big Infrastructure Play?
• Meta inks deal to pay Corning up to $6 billion for fiber-optic cables in AI data centers
• Synthesia Raises $200M Series E at $4B Valuation to Expand AI Training and Agent Capabilities
• Andreessen Horowitz Invests Early in Swedish AI Startup Dentio