Alphabet and Microsoft realized a huge revenue surge attributed to cloud computing and AI investments. They also target accelerating artificial intelligence trends this year.
On January 30, major technology behemoths Microsoft and Alphabet, Google’s parent firm, disclosed the previous quarter’s earnings. The earnings include advancements in cloud computing, artificial intelligence (AI), and others.
Microsoft Realizes Sales Surge as AI Investment Pays Off
Over the past year, artificial intelligence has been a major topic in the technology industry, with the international market size reaching $196.6B last year. Google and Microsoft were some of 2023’s leaders in the artificial intelligence development space, with the two unveiling their high-level chatbots.
At the end of 2023, Microsoft experienced a surge in sales, with its artificial intelligence tools playing a critical role. The report shows that the firm’s revenue surged 18% year-on-year from September to December to above $60B.
Satya Nadella, Microsoft’s chief executive officer and chairman, commented on the firm’s artificial intelligence development. He noted they have shifted from discussing the technology to implementing it at scale. By incorporating artificial intelligence in all layers of their technology stack, they are getting more clients and playing a crucial role in driving new productivity gains and benefits across all sectors.
The unveiling of the end-of-year results happened as Microsoft took the helm as the globe’s most valuable public firm with a value of $3T, beating Apple. Together with its artificial intelligence offerings, Microsoft’s sale of Azure, its cloud computing service, increased 30% year-on-year, which was a more acceptable result compared to what had been envisaged by industry experts.
Microsoft Last Quarter Rise by 33% to Test $21.9 Billion
Microsoft’s overall profits from the fourth quarter rose 33% year-on-year, reaching $21.9B. The firm began this year by unveiling Copilot, its AI chatbot’s pro version, which can develop Office integration and custom GPTs. Nevertheless, it also started the year entangled in a copyright case against OpenAI and a newspaper.
A digital media resource contacted Microsoft for extra info, though the tech giant has yet to respond.
Alphabet also relied on its artificial intelligence incorporations as a critical factor in its fourth-quarter triumph. Sundar Pichai, the firm’s chief executive officer, claimed he is delighted by Google Search’s strength as well as Cloud’s and YouTube’s growth.
Sundar said each is benefitting from their artificial intelligence innovation and investments. As they shift into the Gemini period, more should be anticipated. Alphabet’s reported a combined $86B for the fourth quarter, which rose 13% year-on-year.
Alphabet Commits to Redeveloping Cost Base
Alphabet’s chief investment officer and president Ruth Porat claimed the firm is dedicated to ‘robustly redeveloping its cost base’ to invest and back new growth opportunities. Google started 2024 by drafting a plan for reducing jobs in exchange for attaining its ambitious objectives in areas such as artificial intelligence.
In January last year, Google revealed a 6% cut to its international workforce. The firm had dismissed 182,381 workers by September.
Nevertheless, Google began 2024 by unveiling Lumiere, a realistic artificial intelligence text-to-video generator. It utilizes a time-space diffusion framework to convert images and text into genuine artificial intelligence-created videos with on-demand editing abilities.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.