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Google Spends More Than Competition For Cloud Dominance

Google is revealed to have spent way more than its competition in order to establish cloud dominance, doubling its capital expenditure and spending around $25.8 billion in order to upgrade offices and tech infrastructure.

Ruth Porat, CFO of Google’s parent company Alphabet, also says that most of the expenses related to labor and hiring new employees were from the cloud unit of Google, who took the “lion’s share” of new hires in the last quarter.

Google’s 18th Google Cloud region was apparently launched in the same quarter. The company is still planning for further expansion in the US and other overseas areas.

Contrary to this, Amazon spent roughly $11.3 billion on capital expenditure last year, half of which went to fulfillment operations and half of which went to AWS (Amazon Web Service), Amazon’s own cloud services platform that’s in direct competition with Google Cloud. Another cloud services platform, Microsoft Azure, spent $16 billion in the last quarter.

Currently, Amazon’s AWS is at the top of the game, with reportedly 51% of the market and billions in revenue.