Microsoft ,Google Gain After AI Fuels Cloud Computing Demand

 Tech gaints exceeded wall street estimates following latest quarterly results :





Microsoft Corporation and Google owner Alphabet Inc sent a clear message to investors on Thursday : Our spending on Artificial Intelligence and cloud computing is paying off .

The companies trounced Wall Street estimates with thier latest quarterly results ,lifted by a surge in cloud revenue - fueled in part by booming use of AI services .Alphabet shares surged as much as 12% , the  biggest gain since July 2015, to their highest level ever. The rally pushed Alphabet's valuation past $2 trillion . Microsoft rose as much as 3.5%.

The tech titans have been locked in a fierce battle for dominance in the field of artificial intelligence , with microsoft joining forces with startup OpenAI to challenge Google's two- decade stranglehold on internet search. But Thursday's showed there's ample room for both companies to grow .

Silicon Valley has hailed 2024 as the year that companies will begain to deploy generative AI - technology that can create text, images and videos from simple prompts . In back earbings calls.

Alphabet and Microsoft executives said the programs are driving more business for their cloud computing units .

Corporate customers are more open to making long -term investments in their cloud infrastructure, said Tejas Dessai ,research analyst at Global X ETFs. That's helped make the sometimes - volatile industry more reliable.

"'It's quite clear from these earnings from Microsoft and Google that cloud infrastructure  demand is starting to normalize," he said . Rising cloud computing demand comes as a welcome turn for Google ,which has long trailed Amazon .com Inc .and Microsoft in the market .After breaking even for the first time last year ,Google's cloud operation posted first - quarter profit of $900 million - well ahead of analyst's projections of $672.4 million . The unit is viewed as one of Google's best bets for growth as its core search advertising business matures.

We are really excited about the benefit from AI for our cloud customers,"CFO Ruth Porat said on Thursday.

For Microsoft ,generative AI is letting the company wring more spending from its core enterprise clients .CEO Satya Nadella has been infusing Microsoft's entire product line with AI technology from partner OpenAI.

The bet is starting to pay off , with some customers adding AI tools that summarize documents and generate content .

Microsoft and Alphabet needed to deliver a strong performance to avoid spooking investors,who sent shares of Meta Platforms Inc. down Thursday  after the Facebook parent said during its Wednesday's earning that it would invest billions of dollars more than expected on AI.

After investing $14 billion in capital expenditures in the quarter, Microsoft said its spending will keep continue to rise


Compiled By : Pushpendra Maurya

Profession : Data Scientist


Comments

Post a Comment

Popular posts from this blog

THE FUTURE OF AI IN EVERYDAY LIFE

Image
  Artificial Intelligence (AI) Has emerged as a transformative force across diverse sectors, revolutionizing everything from healthcare to entertainment and education to transportation. Its profound influence extends deeply into our daily routines, becoming an indispensable component of modern life. This article delves into the significance of AI in our everyday experiences, exploring its impact on individuals and societies, and elucidating the myriad advantages it offers. Artificial Intelligence is becoming indispensable in the realm of cybersecurity Serving as a vigilant guardian against cyber threats. Through advanced machine learning algorithms, AI swiftly detects anomalies within network traffic, effectively thwarting potential attacks in real-time. Beyond traditional defenses, AI extends its reach to monitor social media platforms, adeptly spotting fake news and fortifying against phishing attempts. Its multifaceted capabilities are reshaping the landscape of cybersecurity, u...
Read more

Understanding The Difference Between AI, ML, And DL

Image
  I debated whether to write this piece for a long time. This was due to several factors. At a recent AI conference, I was asked to define Artificial Intelligence. I was initially taken aback as I would never expect someone attending an AI conference to ask what the meaning of AI is.   However, after digesting his question and trying to formulate a clear answer, I realised the meaning of AI had not been clearly communicated by the community. After several conversations with various people, I realised that he wasn’t the only person who did not understand Artificial Intelligence (AI) and its bedfellows, Machine Learning (ML) and Deep Learning (DL). I have even conducted a survey by asking 10 friends from various backgrounds if they knew the meaning and difference of these terms. My survey yielded ten distinct responses. In addition, I have realised that these terms are frequently used interchangeably in social media when, in fact, they are all very different things. WHAT DO THE ...
Read more

The Impact of AI on the Education System: A Paradigm Shift

Image
In the age of rapid technological advancement, Artificial Intelligence (AI) stands as a transformative force, reshaping various aspects of our lives. One domain where its impact is particularly profound is the education sector. The integration of AI into education holds the promise of revolutionizing traditional teaching and learning methods, offering personalized experiences, enhancing accessibility, and preparing students for the demands of the 21st century.   Personalized Learning: One of the most significant contributions of AI to education is its ability to personalize learning experiences. Through sophisticated algorithms and data analytics, AI can assess students' strengths, weaknesses, and learning styles, allowing educators to tailor instruction accordingly. Adaptive learning platforms powered by AI can dynamically adjust the pace, content, and difficulty level of lessons to match each student's needs, fostering a more effective and engaging learning environment. Enhan...
Read more