Ryanair has signed a five-year agreement with Google Cloud covering AI, productivity tools and multi-cloud infrastructure, just weeks after renewing its deal with rival AWS for another five years. The Irish budget airline says it will deploy Google Workspace and Google Cloud services across its 35,000-strong workforce as it pursues a target of 300 million passengers a year by 2034. We asked how much this deal is worth, but Google declined to say and Ryanair did not respond. The rollout includes the Mountain View firm's Gemini Enterprise agentic AI platform, which Ryanair intends to use to automate some decision-making, optimize flight crew logistics, and improve staff productivity. The airline will also use Google DeepMind's AlphaEvolve to refine algorithms and WeatherNext for forecasting and maintenance planning. Ryanair renewed its agreement with AWS for another five years on July 27, making AWS and Google Cloud the two pillars of what the airline itself calls its dual-cloud resilience strategy. Google says the dual-cloud setup will allow critical systems to switch between providers if one suffers an outage, helping keep flight operations, and customer services running. Under the renewed AWS agreement, Ryanair will continue using services including Amazon Quick, Amazon Bedrock, and Amazon Bedrock AgentCore for workloads ranging from its website to operational planning across a fleet of 647 aircraft. Reg readers may recall that AWS and Google Cloud were touting a jointly developed multi-cloud connectivity service at the end of last year. This links Google's Cross-Cloud Interconnect with AWS Interconnect, allowing customers to set up a private high-speed link between resources they have running on the two cloud platforms. "Ryanair is on an incredible growth journey to 300 million passengers by 2034. To support this growth, we need to ensure we have excellent infrastructure resilience, and our new dual-cloud strategy provides this," commented the airline's CEO, Eddie Wilson. "We are thrilled to be Ryanair's AI transformation partner," stated Maureen Costello, Google Cloud VP for UK, Ireland and Sub-Saharan Africa. "This agreement demonstrates how deploying generative AI at scale – coupled with modern collaboration tools for frontline workers – can help industry leaders scale securely, reduce operational costs, and redefine the travel experience." ®

Chinese tech giant Tencent has turned its back on instant profits, betting that a new business unit that creates its own AI and embeds that in its products will pay off to a greater extent than cashing in on demand for computing resources. During the company’s Q2 earnings call yesterday, Bernstein analyst Robin Zhu asked when Tencent expects to see a return on investment from the $53 billion capital expenditure it made in the quarter. Chief Strategy Officer James Mitchell said demand for compute resources is so strong that Tencent could recover its depreciation costs “almost immediately” if it rented its infrastructure. Company president Martin Lau said if Tencent behaved like a neocloud it would “achieve a decent return in an immediate timeframe” as the company has offers for its compute capacity “at more than 30 percent profit compared to the price that we paid just a few months ago.” Lau said Tencent is instead “playing a different game or executing a larger strategy in that we are allocating a very substantial proportion of the new compute to building our own models to state-of-the-art status, and also to deploying, popularizing, and bringing our own AI applications to market leadership in China.” He said Tencent believes that if Tencent can provide “superior intelligence that we can achieve through state-of-the-art models, through market-leading AI applications … we can then convert into superior economic returns over the longer term.” Those returns will come from selling tokens for services like WorkBuddy, which Tencent says is an agent swarm that can “plan, execute, and run tasks in parallel, handing back complete deliverables end-to-end in one flow.” Tencent also offers CodeBuddy, a code generation tool that Mitchell said is accelerating cloud migration projects and therefore creating more business for Tencent cloud. Tencent released its latest model, the 295-billion open-weight Hunyuan-3 in July. Lau described it as “a very small model” and promised that the forthcoming Hunyuan-4 will be bigger – and more capable than larger models from other companies. He also said Tencent is designing its products specifically to work with Hunyuan-4, and that mutual optimization will make those products more powerful than would be the case if they relied on other models. The company also plans a fifth version of Hunyuan, and Lau said at some point Tencent will deliver a state-of-the-art model. Tencent is already producing thoroughly modern results for a tech giant: Revenue for Q2 grew 11 percent to reach $30.3 billion. Net profit rose nine percent to $10.3 billion. The company’s flagship messaging apps, Weixin and WeChat, saw average monthly active users rise seven million to 1.349 billion. Advertising-related revenue rose 22 percent, and the company’s gaming biz grew 17 percent in China alone. Investors aren’t sure what to make of this. The company’s share price has trended down since Wednesday and dipped around three percent since the company’s earnings announcement. ®

Rent-a-GPU cloud Nebius plans to bring online over a gigawatt of datacenter capacity every year starting in 2027, but doing so will require playing the margins and juggling a mountain of debt. “Our future capacity pipeline effectively makes Nebius one of just a few companies in the world able to build more than a gigawatt of new capacity a year and we plan to do so in 2027,” CEO Arkady Volozh boasted on Wednesday’s earnings call. The endeavor won’t be cheap. In 2026, Nebius says it expects to burn between $20 billion and $25 billion on capital expenditures to bring between 800 and 1,000 MW worth of bit barn capacity online. A big chunk of that will be covered with customer prepayments — essentially deposits for future capacity. According to Nebius CFO Dado Alonso, the firm is on track to exceed $9 billion in customer prepayments this year. But this alone won’t be enough. So like most big rent-a-GPU rackets, including CoreWeave and Lambda, Nebius is taking on debt to finance its expansion. Specifically, the company is using its GPUs and contracted cash flows as collateral to secure favorable interest rates on the coveted accelerators. Nebius landed its first asset-backed debt facility valued at $775 million in July, and Alonso says the company will continue leaning on the financing scheme going forward. No surprise. Along with debt financing, the company is also exploring an asset-light model where “partners finance, build, and operate the facilities, whereas Nebius brings the full-stack platform and demand,” Volozh told analysts. In other words, Nebius gets to claim deployed capacity it didn’t have to front the cash for, but that relies on the company's ability to rent capacity for less than it can resell it for. While hitting a gigawatt of capacity a year won’t be cheap, Volozh is confident the investment will pay off in the long run. He claims that for every megawatt deployed, Nebius will bring in between $20 million and $25 million in revenues for medium-term leases, and $40 million to $50 million for short term leases up to six months. On the low end of the scale, that implies $20 billion a gigawatt, although Nebius Chief Product and Infrastructure Officer Andrey Korolenko notes that while the company expects to have up to a gigawatt of connected power by year’s end, not all of it will be active and generating revenue until 2027. “You have to commission the datacenter, build the network, build the clusters, deploy the platform, then onboard the customers, and then the revenue generation starts,” he said. “That takes a few months.” “In terms of our guidance from 800 megawatts to a gigawatt… I would think about that being active throughout the first half of 2027,” he added. But even if Nebius has to wait until 2027 to pull a full gigawatt of capacity, that still implies a massive uplift in revenue, which is forecast to hit $3 billion to $3.4 billion for fiscal year 2026. The past quarter accounted for just $582 million, which suggests Nebius will bring in more than $2 billion over the next two quarters if you believe its projections. There are a lot of faithful among the investor community, as its share price surged more than 30 percent on Wednesday following the report. While revenues are expected to increase dramatically over the next few quarters, it's easy to sell dollar bills for 70 cents apiece. Whether the company actually manages to turn a profit renting the shovels of the AI gold rush is another matter entirely. In Q2, the company posted an operating loss of $176 million, a jump from the $111 million operating loss it booked in the year-ago quarter. ®