Microsoft, Google earnings shine as AI drives revenue
High Temperature Days: Barring miracle, record of 76yrs breaks today
Areas in Dhaka where gas supply will be off for 12 hours tomorrow
IMF suggests raising power, gas and fertiliser prices
Rain likely in parts of Chattogram, Sylhet divisions
Microsoft and Google Quarterly Earnings
Microsoft and Google exceeded quarterly earnings expectations as they continued to heavily invest in artificial intelligence, setting the stage for transformative changes in people's lives. Wall Street investors reacted positively, with Alphabet's share price soaring over 11 percent and Microsoft's shares rising nearly 4 percent in after-market trading.
Alphabet’s Performance
Google parent Alphabet reported a profit of $23.7 billion on revenue of $80.5 billion, attributing the growth to cloud computing, YouTube, and online search advertising. Sundar Pichai, Alphabet and Google chief, highlighted the role of artificial intelligence in driving the company's success, particularly with the Gemini AI model.
Google's cloud computing unit generated $9.5 billion in revenue, compared to $7.5 billion in the same quarter the previous year. Google also announced its first-ever dividend of 20 cents per share, signaling a positive outlook for the company.
Microsoft's Growth
Microsoft's sales in the January to March period increased by 17 percent year-over-year to $61.9 billion, with net profit up by 20 percent to $21.9 billion. The company's strategic focus on generative AI, including partnerships with leading AI startups, has driven growth in key cloud services like Azure.
The aggressive push into AI has positioned Microsoft as a key player in the industry, with significant investments in AI research and infrastructure. The company's success in monetizing AI has solidified its position in the market, surpassing competitors and attracting ad buys.
Challenges and Regulatory Scrutiny
While Microsoft and Google lead the AI revolution, they face challenges related to regulatory scrutiny and antitrust concerns. Government agencies in the US and Europe are closely monitoring the AI investments and alliances of tech giants to ensure fair competition and prevent monopolistic practices.
Despite the positive earnings, concerns exist about potential AI fatigue and regulatory hurdles that could impact future growth. Maintaining a balance between innovation and regulatory compliance will be crucial for sustaining the momentum of AI-driven revenue for Microsoft and Google.
