Microsoft, Google Gain After AI Fuels Cloud Computing Demand
Microsoft Corp. and Google owner Alphabet Inc. sent a clear message to investors on Thursday: Our spending on artificial intelligence and cloud computing is paying off.
Cloud Revenue Boosts Tech Titans
The companies exceeded Wall Street estimates in their latest quarterly results, driven by a surge in cloud revenue fueled by the increased use of AI services. Alphabet shares saw a 12% surge, the largest gain since July 2015, reaching their highest level ever. This pushed Alphabet’s valuation past $2 trillion. Meanwhile, Microsoft's shares rose by 3.5%.
AI Dominance Battle
The recent results indicate that there is ample room for growth for both companies in this field.
Generative AI in 2024
Silicon Valley anticipates 2024 as the year when companies will start deploying generative AI, a technology capable of creating text, images, and videos from basic prompts.
Corporate Cloud Infrastructure Demand
With the rising demand for cloud computing, corporate clients are increasingly investing in their cloud infrastructure. This trend has made the industry more stable and reliable.
Google's Cloud Success
Google, previously trailing behind Amazon and Microsoft in the cloud market, has seen significant progress. After breaking even last year, Google's cloud arm reported a first-quarter profit of $900 million, surpassing analysts' expectations.
Microsoft's AI Advancements
Sales of Microsoft's Azure cloud platform climbed 31% in the quarter, surpassing analysts' predictions.
GitHub and AI Coding Assistant
The AI-coding assistant, powered by OpenAI's large language model, assists developers in predicting lines of code, answering questions, and converting code between programming languages.
Both companies have shown promising results in their AI and cloud computing strategies, indicating a positive outlook for the future.
