The company developed its own custom chips, Trainium and Inferentia, which can offer cost-optimal alternatives to traditional GPUs. AWS also now features a wide range of AI and machine learning services for customers, including machine learning models, natural language processing, and computer vision.

Alphabet is one of the few AI powerhouses that surprisingly remained affordable amid the AI-driven technology rally. Currently trading at just 18.7 times forward earnings, the company is significantly cheaper than other technology giants, such as Microsoft, which trades at 32.8 times forward earnings, and Nvidia, which trades at 36 times earnings.