Microsoft and Google’s financial reports demonstrate that artificial intelligence can make money
Microsoft reported a profit of $21.9 billion, while Google earned $23.7 billion – both companies claim that artificial intelligence is part of this success.
According to Business Insider, CEO of Alphabet, Google’s parent company, Sundar Pichai, said that while most of the revenue comes from advertising on the search engine, he also emphasized the contribution of the Cloud, which now comes with generative AI services through the Gemini model.
“In Cloud, we have announced more than 1,000 new products and features over the past 8 months. At Google Cloud Next, more than 300 customers and partners spoke about their generative AI successes with Google Cloud, including global brands like Bayer, Cintas, Mercedes Benz, Walmart, and many more,” Pichai told investors during a phone call.
Alphabet’s Chief Financial Officer Ruth Porat said during a conversation with investors that the company’s cloud segment generated $9.6 billion in revenue.
At the same time, Microsoft also notes the large contribution of cloud business and artificial intelligence. The company generated $26.7 billion in revenue from its cloud products, including Azure. The company stated that 7% of its growth due to Azure came from AI.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” Satya Nadella said.
These results were also reflected in investors, who are satisfied with the results of both companies. This also led to a sharp rise in the companies’ shares, in contrast to Meta, which lost 16% of its share price after the financial report.