Alphabet Shares Surge 7% as Google Cloud Tops Rivals with 63% AI-Fueled Growth

Alphabet shares climbed around 7% after Q1 results showed Google Cloud revenue soaring 63% to $20.03 billion, outpacing Amazon's AWS at 28% ($37.6 billion) and Microsoft's Azure at 40%, as all three beat estimates on AI demand. The story started with an FT report on Google leading Big Tech amid $725 billion AI spending plans, evolving to reveal combined 2026 AI outlays exceeding $700 billion (up from $600 billion). Alphabet hiked capex by $5 billion to $180-190 billion, drawing investor rotation to AI revenue winners and heightening volatility in cloud plays.