Alphabet and Amazon’s AI Strategies
Alphabet (NASDAQ: GOOG, GOOGL) is integrating its Gemini family of large language models into key services, including Google Search and Google Cloud. A notable agreement with Apple will have them use Gemini to enhance Siri, set to debut in late 2026. This deal taps into Apple’s user base of over 2 billion devices, helping Alphabet diversify its revenue streams. Meanwhile, Google Cloud reported a backlog of $155 billion at the end of Q3 2025 and is set to acquire cloud security firm Wiz for $32 billion.
Conversely, Amazon (NASDAQ: AMZN) is focused on enhancing its Amazon Web Services (AWS) division, which saw a backlog of nearly $200 billion and a revenue growth acceleration of 20.2% year-over-year in Q3—its highest in nearly three years. The company also secured a $38 billion agreement to provide cloud capacity to OpenAI. With its growing advertising segment and efforts to enhance retail service, Amazon aims for a balanced growth strategy while Alphabet targets more AI-driven returns.
