It’s a sure sign of AI tunnel vision when Google’s owner Alphabet can report the GDP of a small country in quarterly revenue, claim double-digit growth, beat profit expectations and yet be greeted by investors with a shrug and thumbs down.
But all investors were looking at was the cloud performance of each business: Google’s cloud unit recorded revenue of $US8.41 billion, up 22 per cent. That was dwarfed by Microsoft’s Azure cloud business, which grew 28 per cent, with the business unit containing it hitting $US24.3 billion in revenue.Microsoft and Alphabet are trying to add artificial intelligence to everything they do.
That worries investors who see it as a sign of AI weakness. Microsoft’s rapid growth, by contrast, will result in a larger market share.During an earnings call on Tuesday, Microsoft chief executive Satya Nadella said his company was winning more customers for Azure via “OpenAI API’s as leading AI start-ups use OpenAI to power their AI solutions.”
Alphabet’s position is tougher. Take search: it has to embed AI results into its results in a way that consumers like, while maintaining just as many ads, and delivering balanced perspectives on topics as controversial as the Israel-Palestine conflict.
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