Bigtech are strengthened with investments in AI and the cloud – El Sol de México

The big tech companies Microsoft, Google and Meta once again reported higher income in the third quarter of the year due to the boost of investments in the cloud and Artificial Intelligence (AI).

According to financial reports, Microsoft reached 56,517 million dollars in revenue, which meant a growth of 13 percent compared to the same period of the previous year.

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This growth was mainly driven by Microsoft’s services area, which encompasses services such as Office, Xbox, and cloud computing, a unit known as Microsoft’s Intelligent Cloud, which hosts the Azure platform.

According to its report, Microsoft’s cloud unit reached $24.3 billion, 19.4 percent growth compared to last year, being the segment that grew the most for Microsoft.

An important part of this growth is the integration of Artificial Intelligence to the entire product catalog, including its cloud service, search engine and even work software.

Microsoft has become one of the pioneers of AI, after being one of the largest investors in the startup OpenAI, creators of the generative AI chatbot ChatGPT.

“We are rapidly incorporating AI into every layer of the technology stack and into every function and business process to drive productivity gains for our customers,” said Satya Nadella, president and CEO of Microsoft, during the presentation of quarterly results.

For its part, Google’s Alphabet reached $76,693 million in revenue in the third quarter of the year, which meant a growth of 11 percent compared to the same period of the previous year. This increase was driven by the YouTube search engine and the push to the Cloud.

In the case of the company’s Cloud service, its revenues reached $8.41 billion, a growth of 22.5 percent compared to last year, the lightest growth since the first quarter of 2021.

“The fundamental strength of our business is driven by Search and YouTube, and the momentum of Cloud. “We continue to focus on judicious allocation of capital to deliver sustainable financial value,” said Ruth Porat, president and chief investment officer of Alphabet.

Google has also deployed AI in dozens of its products, including incorporating them into mobile phones and its search engine. Additionally, earlier this year the company launched its generative AI chatbot called Bard in order to compete with ChatGPT.

Finally, Meta reached 34,146 million dollars in revenue, which meant a growth of 23 percent compared to the same period of the previous year, as reported in its quarterly financial report.

The social media giant divides its financial results into two aspects: applications (Facebook, Instagram, Messenger, WhatsApp and other services) and reality laboratory (everything related to virtual and augmented reality).

Social media applications are its main sources of income, since they represent 99 percent of its income and in the last quarter they grew 23 percent.

A clear example is the five percent growth in Facebook’s daily active users worldwide.

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According to the financial report, Meta benefited from the development of technology in Artificial Intelligence, recovery of digital advertising and an aggressive austerity campaign in its work teams, since in the previous year they laid off nearly 21 thousand employees.

Regarding AI, Meta assures that its capital expenditures for the entire year 2024 will range between 30 billion and 35 billion dollars, with growth in investment to develop Artificial Intelligence hardware and data centers.

2023-10-28 08:00:00
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