News Formal

Microsoft surpasses Alphabet in cloud race with OpenAI bet, enterprise focus

  • 📰 Reuters
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Microsoft is outstripping Alphabet in the race to make money from generative artificial intelligence through early bets on OpenAI and focus on big clients, raising worries that the Google parent could lose share in the cloud-computing market.

Cloud spending by businesses preparing to roll out AI features powered a rebound in growth for Microsoft's Azure platform in its first quarter, lifting the shares of the Windows maker

"Demand for artificial intelligence drove Microsoft's growth. Demand among Google's larger clients was similar, but the firm is more exposed to high-growth and startup clients, which have been more aggressive with cost-control efforts," Morningstar analyst Ali Mogharabi said. Strong AI use was responsible for a 3 percentage point boost to the Microsoft's cloud business in the September quarter.

Analysts said that will further drive up adoption of its AI services. Alphabet has also deployed AI in products such as its flagship Pixel phones and had more recently tested adding generative AI to its search engine. Many analysts were also optimistic about strength in Alphabet's core search business, but they warned the weakness in the cloud business would continue.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market Today: Dow Futures Rise; Bitcoin JumpsEarnings seasons heats up again, with Microsoft and Google parent Alphabet among the companies reporting
Source: WSJ - 🏆 98. / 63 Read more »

Dow futures rise as bond yields fall; Alphabet and Microsoft earnings in focusDow futures rise as bond yields fall; Alphabet and Microsoft earnings in focus
Source: Investingcom - 🏆 450. / 53 Read more »

Dow futures lift, Alphabet and Microsoft earnings in focusDow futures lift, Alphabet and Microsoft earnings in focus
Source: Investingcom - 🏆 450. / 53 Read more »

Google-parent Alphabet's cloud division misses revenue estimatesGoogle-parent Alphabet's (GOOGL.O) cloud division missed estimates for third-quarter revenue on Tuesday as an uncertain economy and high interest rates forced companies to trim their budgets.
Source: Reuters - 🏆 2. / 97 Read more »