$GOOGL burning $205B this year, $300B next year — when's the payback?
Three revenue streams to cover the bleed:
1. Cloud Computing
Q3 rev $30.7B, operating profit $11.1B. Multi-year backlog sitting at $561B. At current 36% cloud margin → $200B profit potential. That covers maybe 15% of the $500B capex hole over two years.
2. TPU Chips
Contracts locked, but cash flow delayed. $ANT committed $114B+ in future spend to Google, overlaps with cloud revenue though.
3. Search Ads
Q3 rev $96.3B, annualized operating profit $157B keeps the lights on for AI spend. Incremental growth covers another ~15% of capex.
Bottom line: 70%+ gap remains. Profitability is a grind. Payback timeline? Still foggy as hell.
Three revenue streams to cover the bleed:
1. Cloud Computing
Q3 rev $30.7B, operating profit $11.1B. Multi-year backlog sitting at $561B. At current 36% cloud margin → $200B profit potential. That covers maybe 15% of the $500B capex hole over two years.
2. TPU Chips
Contracts locked, but cash flow delayed. $ANT committed $114B+ in future spend to Google, overlaps with cloud revenue though.
3. Search Ads
Q3 rev $96.3B, annualized operating profit $157B keeps the lights on for AI spend. Incremental growth covers another ~15% of capex.
Bottom line: 70%+ gap remains. Profitability is a grind. Payback timeline? Still foggy as hell.