While Wall Street continues debating the long-term winners of the AI race, Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) may already be separating itself from other hyperscalers when it comes to actually making money from artificial intelligence.



<h2>Google's AI Approach Stands Out</h2>



That's according to Mo Sparks, chief product officer at Direxion, who believes Google's ability to monetize AI across chips, cloud, models and search is giving the company unusual flexibility in the current market cycle.



In comments exclusive to Benzinga, Sparks said &#34;Google is the one that has most effectively monetized AI thus far&#34; among the hyperscalers.



&#34;Monetizing Gemini was a win for Google,&#34; Sparks said, while noting rivals like Amazon.com, Inc. (NASDAQ:AMZN) and Meta Platforms, Inc. (NASDAQ:META) faced investor concerns around free cash flow and heavy capital expenditures.



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<h2>TPU Momentum Expands AI Trade</h2>



Sparks also argued Alphabet's rapidly expanding TPU business signals the AI infrastructure trade is becoming broader than just Nvidia Corp (NASDAQ:NVDA).



&#34;Alphabet's TPU momentum shows the expansion of the breadth of the AI infrastructure trade,&#34; he said, adding that growing demand for both GPUs and TPUs suggests the market opportunity may be larger than investors initially expected.



Still, Sparks did not frame Google's infrastructure push as outright bearish for Nvidia.



Instead, he called it &#34;a bullish sign showing how wide this trade has started to reach.&#34;



<h2>Full-Stack AI Strategy Gains Attention</h2>



According to Sparks, Google's biggest advantage may be its ability to compete across multiple layers of AI simultaneously.



&#34;Google is approaching AI holistically and, as a result, is monetizing AI more effectively,&#34; he said.



That flexibility, he argued, allows Google to stay &#34;nimble with whatever is in demand at any given point in time&#34; — something Sparks suggested other hyperscalers have not fully achieved yet.



For investors, the bigger takeaway may be that the AI race is increasingly becoming about who can monetize the full stack — not just who builds the best chips.



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Photo Courtesy: Markus Mainka on Shutterstock.com

Google I/O took place on May 19th, followed closely by Google Marketing Live on May 21st. The market focus has shifted from "Will Gemini 4.0 be released?" to "Can AI make money?"—Can AI search expand commercial queries? Can AI Max replace Dynamic Search Ads as the new default for advertising? Can agency-based shopping complete the transaction loop? Can Google Cloud's backlog of orders, which nearly doubled to $462 billion month-over-month, continue to grow? Everything hinges on these two events. Are you betting that Alphabet will take another leap forward with AI, or has its valuation already exhausted expectations?

Google I/O took place on May 19th, followed closely by Google Marketing Live on May 21st. The market focus has shifted from "Will Gemini 4.0 be released?" to "Can AI make money?"—Can AI search expand commercial queries? Can AI Max replace Dynamic Search Ads as the new default for advertising? Can agency-based shopping complete the transaction loop? Can Google Cloud's backlog of orders, which nearly doubled to $462 billion month-over-month, continue to grow? Everything hinges on these two events. Are you betting that Alphabet will take another leap forward with AI, or has its valuation already exhausted expectations?

With two AI conferences being held in quick succession, can Google AI truly make money?

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Direxion's Mo Sparks claims Google is leading in AI monetization through its TPU, cloud, and search strategies, outperforming rivals like Amazon and Meta. Sparks highlights Google's holistic approach to AI, allowing it to adapt quickly to market demands. He notes that the expanding TPU business indicates a broader AI infrastructure market, suggesting significant growth potential beyond Nvidia. The key takeaway for investors is that success in the AI race hinges on effective monetization across the entire AI stack.

- Alphabet Inc. is positioned as a leader in monetizing artificial intelligence compared to other hyperscalers, according to Mo Sparks from Direxion.  
- Sparks highlights Google's effective monetization across various sectors, such as chips and cloud services, which allows for unique market flexibility.  
- He suggests that the competition in the AI race is shifting towards the ability to monetize the full AI stack rather than merely developing superior hardware.

EXCLUSIVE: Google's AI Monetization Strategy May Be Leaving Rivals Behind, Says Direxion