48% of Google Cloud Revenue Next Year Could Come From Just 2 Companies That Have Still Never Turned a Profit

On a Bloomberg Businessweek conception that aired August 7, 2026, Ed Zitron, CEO of EZ Primary Research and 1 of the much vocal AI skeptics successful fiscal media, made a assertion that reframes however investors should deliberation astir hyperscaler unreality growth. Citing UBS estimates that 27% of Google Cloud's gross this twelvemonth comes from OpenAI and Anthropic, rising to 48% adjacent year, totaling implicit $124 billion, Zitron argued that the AI roar powering Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) is dangerously narrow.

Zitron's thesis: what looks similar broad, diversified endeavor request for AI compute is, successful his view, circular financing concentrated successful 2 unprofitable backstage companies that, arsenic helium enactment it, "do not wage their bills retired of existing currency flow."

The Concentration Numbers Across the Three Hyperscalers

Google Cloud is the epicenter of the argument. The conception posted $24.768 cardinal successful Q2 2026 revenue, increasing 82% year-over-year, its 5th consecutive 4th of acceleration. Alphabet spent $44.924 cardinal connected capex successful the quarter, much than treble the anterior year, and raised astir $70 cardinal done combined equity and indebtedness financing, per its Q2 8-K filing. Free currency travel turned antagonistic astatine -$5.855 billion, and the buyback was suspended.

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Zitron's statement is that this spending is being underwritten by a lawsuit basal astir investors misunderstand. At AWS, Barclays puts vulnerability to those aforesaid 2 customers astatine 13% this year, rising to 18% adjacent year. At Microsoft, Zitron reported that 69% of Microsoft Intelligent Cloud's year-over-year maturation successful 2025 came from OpenAI alone, and without it that conception would person grown conscionable 8% year-over-year. He besides cited reporting from The Information that 89% of the largest AI companies' gross comes from OpenAI and Anthropic.