Google And Microsoft Announce Better Profits In Recent Quarter Amid AI Boom

Both tech giants Google and Microsoft announced better-than-expected earnings in latest quarter owning to rapid growth in artificial intelligence.

Google has played a close second to the partnership between Microsoft and OpenAI in rolling out its AI products following the release of ChatGPT.

Current market growth scenario of Microsoft:

"For the second consecutive quarter, Microsoft has more than reversed the trend, seeing profits and sales soaring to the highest levels ever," according to media report.

The report further added: "An earnings statement reported that net profit for Microsoft was $20.1 billion in the April to June period, up 20 percent year-on-year and above expectations."

"The company posted $56.2 billion in sales, which also beat expectations, though the growth slowed from the previous quarter," the report mentioned.

Current market growth scenario for Alphabet:

Google parent Alphabet on Tuesday also reported profits that beat market forecasts as digital advertising revenue revived and its cloud business grew.

According to Reuters report: "The search engine giant reported net income of $18.7 billion on revenue of $74.6 billion in the recently ended quarter."

"Alphabet shares jumped more than six percent to $129.57 in after-market trades following the results," the report added.

Words from Google:

Google said that "advertising revenue hit $58.1 billion, which outshined analysts' expectations of $57.45 billion."

Satya Nadella's statement:

"Every customer I speak with is asking not only how, but how fast they can apply next generation AI to address the biggest opportunities and challenges they face and to do so safely and responsibly," said Microsoft CEO Satya Nadella.

Microsoft shares lifted off last week when the company said it "would charge $30 extra per user to turbocharge its Microsoft 365 product -- which includes Word, Excel and Teams -- with AI powers."

Sundar Pichai's statement:

"There's exciting momentum across our products and the company, which drove strong results this quarter," Alphabet chief executive Sundar Pichai said in an earnings release.

"Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services," Pichai said.

Words from Rob Enderle:

"I think people got overly excited by AI, but now the reality is that it is not going to be instant," said independent analyst Rob Enderle of Enderle Group.

"We are talking a few years before the full benefit starts to materialize."

"Google is also a player in the cloud computing industry, where revenue came in at $8 billion, compared with $6.3 billion the unit took in during the same period a year earlier," he claimed.

Wall Street Journal Shares Update on Google's strategy:

According to The Wall Street Journal, "Google co-founder Sergey Brin is back at the company headquarters in California helping teams develop even more AI products."

"He and co-founder Larry Page stepped down from active roles at Google in 2019 when Pichai was chosen to replace them as chief executive," the report mentioned.