Amazon, Alphabet, and Microsoft Soar on $2.3 Trillion Cloud Backlog

The combined cloud backlog across Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and Oracle has surged from $800 billion to $2.3 trillion in one year, according to recent earnings reports.

This figure represents signed customer commitments rather than forecasts, and a large portion of these agreements will come up for renewal in the next two years when GPU capacity has become scarce and computing prices have begun climbing.

Nvidia's H100 GPU rental prices have climbed 63% in one year, flipping technology's usual trend of falling hardware costs as AI demand increases. Microsoft and Google are already capacity constrained, meaning customers want more AI computing than these companies can currently provide.

The three larger hyperscalers, Amazon, Alphabet, and Microsoft, generate enormous free cash flow that helps fund expansion internally, unlike Oracle which has relied heavily on debt to finance its infrastructure buildout. This financial risk may be higher for Oracle if growth slows or construction timelines slip.