Microsoft and Google's Revenues Rise As a Result of AI Demand By CIOTechOutlook Team

Microsoft and Google's Revenues Rise As a Result of AI Demand

CIOTechOutlook Team | Wednesday, 31 January 2024, 06:27 IST

The tech giants claimed that demand for artificial intelligence services fueled revenue, Microsoft and Google posted solid corporate earnings. The tech titans have made huge wagers on generative AI based intelligence, with their distributed computing divisions seeing a lift popular as clients look for the robust - - and more costly - registering power that drives the innovation.

Microsoft has moved the fastest and furthest into the AI space, investing in ChatGPT-maker OpenAI and pushing AI across products while others chose to move more carefully. The company said sales leaped to $62 billion for the October to December period, up 18 percent year-on-year and above the $61.1 billion projected by analysts, as per economic times.

Microsoft is now the world's largest company by market capitalization, surpassing Apple by more than three trillion dollars, thanks to the AI revolution. When compared to a year ago, the company's share price has increased by a staggering 70%.

"We've moved from talking about AI to applying AI at scale," said Satya Nadella, chairman and CEO of Microsoft.

Significantly, income for Microsoft's Sky blue cloud administrations bounced by 30% in the period, driven by the greater registering needs that accompany the reception of simulated intelligence. According to the company, Microsoft's sales of cloud services increased by 24% overall.

"By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector," Nadella said.

Google additionally credited simulated intelligence for supporting its benefit in a similar quarter. On $86.3 billion in revenue, Alphabet reported a profit of $20.7 billion, with significant contributions from YouTube and its cloud computing unit.