Alphabet and Microsoft Revenues Grow Due to Artificial Intelligence Demand
Tech giants Alphabet and Microsoft announced in their reported quarterly balance sheets that artificial intelligence demand is growing rapidly and infrastructure spending has reached billions of dollars.
Alphabet and Microsoft announced their increased revenues driven by growth in the artificial intelligence field and billions of dollars in infrastructure investments.
Alphabet and Microsoft announced that they are continuing their multi-billion dollar infrastructure investments driven by strong demand in the artificial intelligence field. While Alphabet achieved $127.6 billion in revenue in the third quarter with a 25 percent increase compared to the same period last year, Microsoft's fiscal first-quarter revenue increased by 19 percent to reach $92.3 billion. Google Cloud revenues rose by 103 percent to $30.7 billion, while Microsoft's Azure cloud unit recorded 48 percent growth.
Alphabet CEO Sundar Pichai stated that artificial intelligence infrastructure and solutions are the main drivers of cloud growth, and that they are trying to increase capacity to meet long-term demand. Alphabet increased costs to make approximately $51.4 billion in capital expenditures during the third quarter. Chief Financial Officer Anat Ashkenazi warned that Google Cloud could face near-term margin pressure due to relying on third-party computing capacity in line with demand.
On the Microsoft side, Microsoft Cloud revenues rose 30 percent to $63.9 billion, while remaining performance obligation, a measure of future commercial contracted revenues, increased 73 percent to $677 billion.
Sources
- foxbusiness.com · Link