Google and Microsoft Report Strong Earnings Fueled by AI
TECHDIGEST– Google and Microsoft announced impressive earnings driven by the growing excitement over artificial intelligence (AI). Microsoft’s profits and sales soared, reaching the highest levels ever for the 48-year-old company.
Cloud-based services, heavily reliant on AI, played a significant role in Microsoft’s success, with cloud sales growing by 21 percent year-on-year. Similarly, Google’s parent company, Alphabet, reported profits that exceeded market forecasts, with digital advertising revenue picking up and its cloud business experiencing growth.
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Microsoft’s success was attributed to the release of ChatGPT, which provided an AI boost to its Microsoft 365 product. However, despite the excitement around AI, it was noted that the full benefits may take a few years to materialize. On the other hand, Google’s earnings were primarily driven by its core business of digital advertising, which generated revenue of $58.1 billion, surpassing analysts’ expectations.
While Microsoft has been investing in AI-powered features for its Bing search engine, Google’s search still holds approximately 90 percent of the global market share. However, both companies continue to compete in the AI space, with Google co-founder Sergey Brin reportedly back at the company’s headquarters to drive further AI development.
Overall, the tech giants’ financial results demonstrate the growing impact of AI in driving revenue growth and innovation across various sectors. As they continue to leverage AI technologies, the industry eagerly anticipates their next steps in this rapidly evolving landscape.
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