Google, Amazon, and Microsoft have significantly increased their capital spending on cloud computing, with a combined expenditure of $42 billion in the three months leading up to September, representing a 10% increase from the previous quarter. These investments are primarily directed towards generative artificial intelligence (AI) systems, which demand substantial computing and data power. Amazon's CEO, Andy Jassy, anticipates that generative AI will generate ""tens of billions in revenues."" Amazon Web Services reported a 12% YoY revenue increase to $919 million in its most recent quarter. Generative AI is enabling companies to create agents for tasks like automating workflows and answering questions. Google, too, is heavily investing in generative AI, with over half of funded generative AI startups being Google Cloud customers. CEO Sundar Pichai highlighted the significant growth in active generative AI projects on Alphabet-owned platforms.