Source URL: https://tech.slashdot.org/story/24/11/18/0022217/google-microsoft-are-spending-massively-on-ai-quarterly-earnings-show?utm_source=rss1.0mainlinkanon&utm_medium=feed
Source: Slashdot
Title: Google, Microsoft Are Spending Massively on AI, Quarterly Earnings Show
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**Summary:**
The text discusses Alphabet and Microsoft’s significant financial performance and growth driven by their investments in AI technology. Both companies have reported increased revenues, partly due to the demand for AI services, demonstrating a pivotal shift within the tech industry towards artificial intelligence and its integration across various business segments.
**Detailed Description:**
The article highlights the financial growth of Alphabet (Google’s parent company) and Microsoft as they navigate a transition focused predominantly on artificial intelligence (AI). Key points include:
– **Alphabet’s Performance:**
– CEO Sundar Pichai emphasized the success of long-term AI investments, resulting in a 34% profit increase.
– Alphabet’s stock surged 20% this year, partly due to its commitment to innovation amidst regulatory challenges.
– The company’s capital expenditures increased by 62% to $13.1 billion, driven primarily by AI development.
– Approximately 25% of new code writing within the company is now being performed by AI tools.
– Google’s cloud services have seen a 35% revenue increase, generating $11.35 billion in the last quarter due to rising demand for AI services.
– **Microsoft’s Financial Growth:**
– Following a similar trend, Microsoft reported a 16% sales increase to $65.6 billion, reaffirming that their AI expenditures are yielding positive returns.
– The company spent $20 billion last quarter primarily on cloud computing and AI, contributing about $10 billion annually to its revenue.
– Microsoft’s cloud segment generated $24.1 billion, reflecting a 20% growth from the previous year.
– **Broader Industry Trends:**
– Both companies exemplify a broader industry trend where investments in AI are transforming operational capabilities and redefining business models.
– The competition among major firms, such as Amazon and Meta, intensifies in a technological arms race for AI supremacy.
The insights provided here are critical for professionals in the fields of AI, cloud computing, and infrastructure security as they illustrate the monetary impact and strategic direction that leading technology companies are taking toward AI integration, highlighting the importance of security measures necessary to protect burgeoning AI infrastructures and systems from potential threats.