Google, Microsoft Top Earnings Expectations as AI Boom Continues

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Google, Microsoft Top Earnings Expectations as AI Boom Continues

San Francisco, CA – Tech giants Google and Microsoft announced better-than-expected earnings on Tuesday, as the frenzy over artificial intelligence (AI) continues tostoke.

Google’s parent company, Alphabet, reported earnings of $11.2 billion for the third quarter of 2023, up 23% from the same period a year earlier. Revenue came in at $65.1 billion, up 23% year-over-year.

Microsoft also reported strong earnings, with profits of $16.4 billion and revenue of $49.4 billion. Both companies attributed their strong results to the continued growth of their cloud computing businesses.

“We are seeing strong demand for our cloud computing services,” said Sundar Pichai, CEO of Alphabet. “We believe that AI is the next major wave of innovation, and we are investing heavily in this area.”

Microsoft CEO Satya Nadella said that the company’s cloud computing business is “growing rapidly” and that AI is “a key part of our strategy.”

The strong earnings from Google and Microsoft come as the AI industry is booming. According to a recent report by Gartner, global spending on AI is expected to reach $46.2 billion in 2023, up from $32.3 billion in 2022.

The growth of the AI industry is being driven by a number of factors, including the increasing availability of data, the development of new AI algorithms, and the falling cost of computing power.

As the AI industry continues to grow, Google and Microsoft are well-positioned to benefit. Both companies have significant investments in AI, and they have the resources to continue to develop and deploy new AI-powered products and services.

 

Amid AI Boom, Google, Microsoft Announce Better-Than-Expected Earnings

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