Share this article

Latest news

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low

Copilot in Outlook will generate personalized themes for you to customize the app

Microsoft will raise the price of its 365 Suite to include AI capabilities

Death Stranding Director’s Cut is now Xbox X|S at a huge discount

Outlook will let users create custom account icons so they can tell their accounts apart easier

Microsoft and Alphabet are heavily gaining revenue from AI investments

Meta’s stock price dropped by 11% due to AI investments

3 min. read

Published onApril 30, 2024

published onApril 30, 2024

Share this article

Read our disclosure page to find out how can you help Windows Report sustain the editorial teamRead more

Microsoft and Google’s owner, Alphabet, reported a significant growth in their revenue. The financial results exceeded initial expectations. After all, Alphabet’s stocks grew by over 10%, and Microsoft’s shares increased by 5%. In addition, their AI investments influenced Amazon shares by 3% and Nvidia’s by 6%.

The entire AI sector benefits from Alphabet and Microsoft

Microsoft and Alphabet’s heavy investments in AI development made some of their investors skeptical. However, they deemed the AI sector promising after seeing the results. After all, the cloud computing businesses highlighted the importance of this technology. On top of that, there were various corporate requests for their services.

To Alphabet’s surprise, Google’s advertising revenue grew. So, AI chatbots can’tsurpass search enginesyet. Also, according toeuronews.com, the company’s revenue rose by 15%, the fastest quarterly growth in two years. On top of that, Alphabet announced its first dividend payout, and the company’s market value surpassed $2 trillion.

Besides Alphabet, Microsoft had a revenue increase due to its AI services. Also, they further increased the importance of the company. After all, Azure, the company’s cloud platform that heavily uses AI tech, had significant growth and seized some of the market share of its competitors. Besides that, Copilot contributed to the company’s revenue increase because other companies started using it.

Is Meta still losing money?

Similarly to Microsoft and Alphabet, Meta also joined the AI race. According tothe Financial Times, the company’s stock price dropped by 11%. However, this drastic decrease might suggest that Meta started investing in AI. Yet, this could be a tricky move for the company because it doesn’t have a proven track record of financial returns from AI services. But, if the promised free AI is successful, Meta will most likely snatch some of the market share from competitors.

Microsoft and Alphabet are going to increase their investments in AI infrastructure. The reasons differ, but the goal is overall the same. Microsoft needs to grow its research capacity to continue its AI development at a fast rate. So, the company will fund more research centers. On the other hand, Google isbehind in the AI raceand needs to invest to catch up with Microsoft.

The AI advancements require a lot of components. Thus, most of them became scarce. Additionally, according to Nvidia chief Jensen Huang, if a company doesn’t engage aggressively with AI, it might lose its standing because its competitors will.

In a nutshell, Microsoft is way ahead of its competition, especially since Alphabet struggled with Gemini’s problems. On top of that, theAzure cloud platformis constantly benefiting from AI improvements. However, soon, we might see companies like Meta rising to the top. After all, it’s a battle ofAI services and features. Also, AI might improve the quality and efficiency of your business. So, don’t hesitate to use it.

What are your thoughts? Are you using any AI tools? Let us know in the comments.

More about the topics:AI,Google,microsoft

Sebastian Filipoiu

Sebastian is a content writer with a desire to learn everything new about AI and gaming. So, he spends his time writing prompts on various LLMs to understand them better. Additionally, Sebastian has experience fixing performance-related problems in video games and knows his way around Windows. Also, he is interested in anything related to quantum technology and becomes a research freak when he wants to learn more.

User forum

0 messages

Sort by:LatestOldestMost Votes

Comment*

Name*

Email*

Commenting as.Not you?

Save information for future comments

Comment

Δ

Sebastian Filipoiu

Sebastian is a content writer with a desire to learn everything new about AI and gaming.