Subj : Cloud and AI demand push Alphabet and Microsoft earnings to new h
To   : All
From : TechnologyDaily
Date : Fri Apr 26 2024 13:15:05

Cloud and AI demand push Alphabet and Microsoft earnings to new high

Date:
Fri, 26 Apr 2024 12:00:00 +0000

Description:
AIs hunger for cloud computing resources saw Microsoft and Googles figures go 
through the roof.

FULL STORY
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In the latest testament to the surging demand for cloud computing services, 
fuelled by the surge in AI adoption globally, both Alphabet and Microsoft 
have just reported record-breaking earnings for the most recent quarter. 

Together, the pair account for nearly $5 trillion of the worlds economy, 
positioning them among the top four most valuable companies today. 

Microsoft, the worlds most valuable company, with a market cap of $2.965 
trillion, saw revenue soar to $61.9 billion in the last three months, 
representing a 17% increase compared to the same period last year. Operating 
income climbed an impressive 23% to $27.6 billion, with net income reaching 
$21.9 billion, accounting for a 20% increase. AI is pushing tech giants even 
higher 

Driving the Redmond-based companys figures was its thriving cloud division, 
which recorded revenue of $35.1 billion, accounting for 57% of the entire 
companys revenue and marking an impressive 23% year-on-year growth. 

Speaking about the impressive performance, Microsoft CEO Satya Nadella 
commented: Microsoft Copilot and Copilot stack are orchestrating a new era of 
AI transformation, driving better business outcomes across every role and 
industry. 

In the same three months, Alphabet reported revenue of $80.5 billion, marking 
a considerable 15% year-on-year increase. Of that, Google Cloud accounted for 
around $9.6 billion a notably smaller proportion compared with Microsofts 
cloud business. The company has a market cap of $1.950 trillion, positioning 
it as the fourth most valuable company in the world, behind Apple and Nvidia. 

Google CEO Sundar Pichai likened the AI revolution to those of the web, 
mobile, and voice technology. Ruth Porat, President and Chief Investment 
Officer; CFO, added: Our strong financial results for the first quarter 
reflect revenue strength across the company and ongoing efforts to durably 
reengineer our cost base. 

With both companies hitting record-high earnings and continuing on their 
respective upward trajectories, its clear that cloud services and AI 
technologies will continue to play a significant role in the worlds economies 
moving forward. 

The figures also quantify growing concern over tech giants dominance of the 
market, with the likes of the European Commission, the CMA, and others all 
getting involved by launching their own investigations . More from TechRadar 
Pro These are the best AI tools and best AI writers AI push sees Microsoft 
cloud revenues hit new high Check out our roundup of the best cloud hosting 
providers



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Link to news story:
https://www.techradar.com/pro/cloud-and-ai-demand-push-alphabet-and-microsoft-
earnings-to-new-high


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