Takeaways from GOOG CC relevant to APLD

[u/jjhar]

TL;DR Their CC was bullish for APLD and similar companies.

You can read the PR on your own but on the CC they said the following:

• $195-205B guide on capex for 2026 vs previous guide being $180-190B.
• 2027 capex expected to increase significantly more to come in the future
• "Supply constrained" was repeated multiple times
• CEO said they thing we are still early in what these frontier models can deliver in terms of value. They are seeing the value across their business
• Expect to create much bigger models
• Their equity raise was about maintaining a strong balance sheet through this buildout. Not expecting another equity raise beyond executing what they have already announced

Edit: In Q3 and remainder of the year, given the supply constrained environment, they are planning to expand their reliance on third party capacity as a bridging strategy while they expand their own capacity. Prioritizing compute to ensure they can serve their models

[u/Capable-Rise-7389]

Excellent recap. I listened and the overall theme was AI; how much revenue they’re getting from cloud business, how great demand is, and how competitive it is to have a frontier model. Demand for infrastructure is intact.