Amazon and Alphabet, two tech giants known for their investments in artificial intelligence (AI), may soon make their mark in the gaming industry. With over 3.3 billion gamers worldwide and an expected audience growth to reach 3.8 billion by 2026, the gaming market is bigger than the movie, music, and pro-sports industries combined. Mobile gaming is the largest segment, generating $92 billion in global revenue in 2022. Despite previous unsuccessful attempts, Amazon and Alphabet are poised to become online gaming providers. Amazon Game Studios, launched in 2014, developed three video games but saw little success. Alphabet’s Google Stadia, a cloud-based gaming platform, was shut down due to a lack of exclusive games. In comparison, Netflix Games has seen moderate success by leveraging its control over IP, distribution, and a large global audience. However, industry analysts believe that mergers and acquisitions (M&A) are the most realistic way for tech giants to enter the gaming sector at scale. The recent approval of Microsoft’s acquisition of Activision has sparked interest in potential takeout candidates in the gaming industry. With their substantial investments in generative AI, both Amazon and Alphabet are well-positioned to capitalize on future opportunities in the gaming industry. While the promise of AI in game development is undeniable, the timeline for meaningful profit opportunities remains uncertain.