Tech giants Microsoft and Alphabet (Google) race for AI supremacy, driving innovation and record revenues from cloud and AI products – but also facing talent wars, legal battles, and disruption risks in the game-changing AI revolution.
Microsoft, Google in fierce AI race driving innovation. | (Photo by cottonbro studio on Pexels)
In the flurry race for artificial intelligence (AI), tech behemoths like Microsoft, Alphabet (Google), and a bunch of other major players are competing with one another for massive innovations and investments.
Their surging quarterly results reflect the considerable chances offered by this technological revolution.
Microsoft at the front of AI transformation
Microsoft bets big on AI, cloud revenues soar 20%+ | (Photo by Wonderlane on Flickr)
Top dog in the world with almost $3 trillion in market valuation, Microsoft is betting heavily on AI to propel its growth, especially in cloud computing.
A chance that paid off as incomes from its cloud computing business hopped by more than 20% this quarter!
The group is accelerating the integration of this disruptive technology at the heart of all its software and services.
“Our AI tools are orchestrating a new era of digital transformation, driving better performance across industries,” shared Satya Nadella, the company’s CEO.
Altogether, the Redmond giant’s revenue went up 17% to $61.86 billion in the first three months of 2024, beating analysts’ expectations.
Microsoft’s Earnings per share (EPS) scaled by 20% to $2.94, driven in part by higher cloud transactions above $100 million.
The results galvanized investors, sending the stock up 4% after closing on Wall Street.
This enthusiasm has been multiplied tenfold by the launch of the Copilot AI offer for small businesses.
Microsoft be positioning itself as the epicenter of the AI revolution and the preferred destination for the best talent.
In March, the company poached high-profile executives such as a co-founder of Google’s AI subsidiary DeepMind.
Alphabet, a historic dividend boosted by AI
Alphabet announces dividend, cites AI opportunity, aided by strong revenues.|
(Photo by Brett Jordan on Unsplash)
Google and YouTube’s parent company, Alphabet, ain’t to be outdone in the AI race.
The company took advantage of the public announcement of its quarterly results to announce a historic first: the distribution of a dividend of $0.20 per share to shareholders.
The decision was received by the markets, which sent the stock price up by about 15% after closing.
With $80.5 billion in revenue, up 15% year-on-year, and earnings per share of $1.89, the results far surpassed forecasts.
Including the main driving forces were advertising revenues from Google and YouTube, as well as the rise of Google Cloud, whose operating profit quadrupled to $900 million.
“The transition to AI be a once-in-a-generation opportunity,” CEO Sundar Pichai said as Alphabet ramps up its investment to integrate the disruptive technology.
While the performance was praised, Alphabet be going through a tumultuous period.
Workers have been expelled after protests against a cloud contract with Israel as a court ruling over its business practices hangs over.
A fierce battle for the top spot in AI
Tech titans Microsoft, Alphabet locked in fierce AI race amid legal battles, talent wars.| (Photo by Igor Omilaev on Unsplash)
Beyond the bottom line, these heavies are engaged in a fierce battle for technological and legal supremacy in the strategic AI sector.
Microsoft is making massive investments, such as its partnership with OpenAI, which birthed ChatGPT, to capture top talent and build the best tools.
On its part, Alphabet remains in the sights of the American and European authorities.
A landmark antitrust lawsuit accuses it of illegally dominating online search and the digital advertising market.
Other lawsuits have shaken Google, including a gripe from European media outlets and a chunky fine from Brussels, which the group is taking a stand against.
Faced with these sizeable, technological, regulatory, and human resources challenges, mastering generative AI technologies seems more crucial than ever for these heavies.
A wild race that could permanently reshape the global tech panorama.