48% of GOOGL Cloud Revenue from Two Companies in 2027

UBS estimates that OpenAI and Anthropic will generate 48% of Google Cloud's (GOOGL) revenue in 2027, totaling over $124 billion. Alphabet reported Q2 2026 revenue of $24.768 billion for Google Cloud, an 82% year-over-year growth. In the same quarter, Alphabet's capital expenditures reached $44.924 billion, more than double the previous year, leading to negative free cash flow of -$5.855 billion. This concentration on two unprofitable companies poses risks for investors, as their financial viability impacts broader tech market dynamics.