A-TIER news
Google and Amazon profits — half came from marking up Anthropic stakes
100k ft — What is this?
Google and Amazon profits — half came from marking up Anthropic stakes
50k ft — Why care?
On the earnings night where four megacaps spent ~$130B on AI in a quarter, Google ($20.7B) and Amazon ($16B) booked roughly half their profit from revaluing existing Anthropic stakes. Meta, without that loop, only showed spending and lost ~$120B in market cap.
10k ft — Key takeaways
• Anthropic's valuation jumps feed directly into Google and Amazon EPS.
• Check how much of a 'beat' is non-operating investment gains.
• Same AI capex was rewarded or punished depending on stake exposure.
5k ft — Tools & techniques
Claude
mark-to-market gains
1k ft — Deep-dive / try it
Taking a closer look at Google and Amazon’s profits
Transcript excerpt
Tonight the AI boom finally met reality. Four of the world's biggest companies just reported that they spent 130 billion on AI, three times the size of the Manhattan Project in just three months. All of the headlines now say that the bat paid off. Google's profit surged, met a beat on revenue and earnings, but take a look at the markets. Google stocks surged seven percent while metal lost 120 billion in minutes. This is a story about how money moves. Nearly half of Google's profits is quarter, 20.7 billion came from a stake and already owned in a drop it. Last week Google announced another 40 billion going in and drop its valuation jumps and Google stake in a drop it jumped with it. Then they booked that gain as profit. Amazon to the same thing, nearly half of its profit, 16 billion comes from an existing a drop it stake. Meta isn't in that loop. Meta is just spending. Two companies got rewarded for the same bat that crushed the third.