Alphabet and Amazon posted Q2 FY2026 results centered on custom chips as Nvidia alternatives. Google Cloud hit $24.77 billion in Q2, with operating margin jumping to 35.6% from 20.7%, driven by TPUs. Sundar Pichai said Google offers "the industry's broadest range of accelerators from Google and NVIDIA" and began recognizing revenue from TPU system sales into customer data centers. Amazon's AWS reached $42.23 billion at a 39.4% operating margin, with Trainium and Graviton driving 37% AWS growth, the fastest in 18 quarters. Andy Jassy said "our AI and Chips businesses each eclipsed run rates of more than $25 billion" with triple-digit growth. Graviton5 shipped with up to 25% better compute performance than Graviton4, and Trainium capacity is leased in bulk to Anthropic and OpenAI. Alphabet guides 2026 CapEx at $195B to $205B, while Amazon guides roughly $200B. Alphabet burned $44.92 billion of CapEx in Q2 and posted negative $5.86 billion of free cash flow, with the buyback suspended. Amazon spent $54.21 billion and TTM free cash flow turned negative at $7.6 billion. Google's edge is efficiency, with Chrome engineers "on track to accelerate delivery by eight times"; Amazon's edge is distribution, with Bedrock hosting Claude Opus