(Sherwood News)

Microsoft, Amazon, and Google all have cumulonimbus-sized cloud backlogs

The top cloud companies can’t keep up with the searing demand for AI computing.

10/31/25 3:15PM

Now that Microsoft, Amazon, and Google have reported their earnings, we can get a deeper look at just how much demand for AI computing is fueling their record revenues.

The big three cloud companies all saw double-digit revenue growth (year on year) for their cloud businesses, and are pledging huge capital expenditure spending to meet the white-hot demand.

Microsoft reversed course from its earlier guidance for slowing capex growth, and now is expecting FY 2026 to be higher. Amazon said that it will rack up $125 billion in capex spending by the end of the year, and Google said it should end this year with between $91 billion and $93 billion in capex.

Last quarter alone, Amazon, Google, Microsoft, and Meta spent nearly $100 billion on capex to build massive data centers and buy billions’ worth of Nvidia GPUs, which will hopefully make a dent in all of that booked cloud business.

Rani Molla1h

Tesla used skewed data in push for European FSD approval, Reuters finds

Tesla has used highly questionable safety stats in an effort to win over European regulators and rekindle sales in the region, according to a Reuters investigation.

Tesla reportedly pitched regulators in Sweden and the Netherlands with claims that its Full Self-Driving (FSD) tech is over 7x safer than human drivers. However, independent researchers told Reuters that the stats are misleading because Tesla compares airbag-deployment crashes involving FSD-equipped vehicles with much broader US crash statistics, while also benchmarking newer Teslas against the entire US vehicle fleet, which is significantly older on average.

Despite the flawed metrics, the Dutch regulator approved FSD in April, saying its decision was based on its own “tests, analyses and verifications,” and Tesla is now pushing for EU-wide clearance. A version of FSD is currently available in five European markets.

Exclusive: Tesla presented misleading ‘Full Self-Driving’ safety data to European regulators

Rani Molla6/12/26

Report: Microsoft weighs Xbox spin-off amid major overhaul

Microsoft is reportedly considering spinning out or restructuring its struggling Xbox unit, per The Information. While new Xbox CEO Asha Sharma, who took over in February, is preparing for layoffs, she’s simultaneously planning to boost investment in its biggest franchises like “Halo,” “Fallout,” and “Minecraft.”

The latest potential shake-up comes as the gaming division battles major headwinds, following a massive 33% plunge in Q3 console sales and a recent move to slash Game Pass prices while removing new “Call of Duty” titles.