Alphabet’s GOOGL completion of the Wiz acquisition strengthens Google Cloud’s security capabilities and positions it more effectively to compete against Amazon’s AMZN and Microsoft’s MSFT respective cloud platforms. Per Synergy Research Group data, Amazon’s share in the worldwide cloud infrastructure market amounted to 28% in the fourth quarter of 2025, ahead of Microsoft’s Azure platform at 21% and Google Cloud at 14%. The Wiz acquisition will help Google Cloud offer end-to-end security across the cloud lifecycle. The combination of Google’s threat intelligence with Wiz’s real-time risk detection strengthens security portfolio capabilities.
Alphabet is riding on a strong Google Cloud prospect, which accounts for 14.6% of GOOGL’s 2025 revenues. Google Cloud revenues jumped 35.8% over 2025’s reported figure to $58.71 billion. The top line benefited from growth in Google Cloud Platform (GCP) across core products, AI Infrastructure and generative AI (Gen AI) Solutions. Cloud backlog jumped 55% sequentially to $240 billion at the end of 2025. The AI push is expected to boost Google Cloud’s prospects in the near term.
Integration of Wiz into Google Cloud boosts Alphabet’s enterprise clientele. Wiz currently serves nearly half of the Fortune 100 companies. The company’s expanding AI infrastructure is helping it win enterprise clients. GCP’s prospects remain robust, driven by strong demand for enterprise AI infrastructure, including TPUs (led by seventh-generation Ironwood) and NVIDIA’s latest GPUs, enterprise AI solutions driven by demand for the latest Gemini and other AI models, and other services, including cybersecurity and data analytics. Google Cloud is also benefiting from strong Gen AI adoption due to leading models, including Gemini, Imagen, Veo, Chirp and Lyria. In the fourth quarter of 2025, revenues from products built on Gen AI models grew nearly 400% year over year.
Security push is expected to drive Google Cloud’s top-line growth further. Accelerating investments bodes well for GOOGL’s prospects. Alphabet expects capital expenditure between $175 billion and $185 billion for 2026.
Amazon is spending heavily on fortifying its Amazon Web Services (AWS) infrastructure that supports AI workloads and expanded data center capacity. Amazon committed $200 billion in capital expenditure for 2026, with the vast majority directed toward AWS infrastructure. In the fourth quarter of 2025, AWS grew 24%, its fastest pace in 13 quarters, with backlog surging 40% to $244 billion.
In the second quarter of fiscal 2026, Microsoft Azure and other cloud services revenues accelerated 38% in constant currency (cc), with management attributing significant contributions to AI-related demand. Microsoft Cloud revenues reached $51.5 billion, increasing 24% in cc. For the third quarter of fiscal 2026, Azure and other cloud services revenue growth is expected to reach approximately 37% to 38% in cc.
