Big Tech Revenue
Big Tech Revenue

What We’ve Learned from this Week’s Big Tech Revenue: Enterprise AI is Benefiting

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Meta has touted its open source approach to AI as it has developed new models, and Apple said it will reveal more details about its generative AI projects later this year.

Major Big Tech Revenue heavyweights Microsoft , Alphabet , Amazon , Apple and Meta have all reported profits in recent days, one extolling the role of AI. Monetization is emphasized and key information is provided in… is schemes.

All five companies benefit from enterprise business components, where business customers pay for services such as cloud platforms and software or devices that they can use in their workflows.

They are also all members of the “Magnificent 7” and are expected to be the biggest contributors to the S&P 500’s gains this quarter, according to FactSet estimates.

The AI Advantage Boosted Microsoft’s Profits

Chief Executive Officer (CEO) Satya Nadella said Microsoft’s profitability exceeded expectations, supported by growth in the company’s cloud segment Azure driven by its “AI advantage”.

The company reported 53,000 Azure AI customers, a third of whom were new to the service in the past year.

The company also said it is working to scale AI initiatives across its segments.

Microsoft has defined itself as a leader in the AI race with its ongoing partnership with OpenAI and is the top choice among analysts.

AI Makes Alphabet Services Possible at Big Tech Revenue

Alphabet, the parent company of Google, reported that the company’s AI-powered enterprise cloud and workspace customers and ad revenue fell short of expectations in the fourth quarter.

Duet AI, which adds AI tools to Google Workspace, and Vertex, which powers Google Cloud for Generative AI (GenAi) tools for customers using the Gemini chip, has Google business customers including McDonald’s (MCD), the company said contributed to expanding into a wider range of ) is . , Verizon (VZ), The Moody & Victoria’s Secret (VSCO).

Google said it is using Gemini-powered AI to improve ads on search and YouTube for the benefit of retail advertisers. Gemini also powers the company’s AI chatbot, Bard, which competes with OpenAI’s ChatGPT.

Pichai said there will be “significantly larger” capital expenditures in 2024, but noted that Alphabet is committed to disciplining its growth investment plans.

AI-Powered AWS is Driving Amazon Sales

ZenaI’s tools in Amazon Web Services (AWS), the company’s cloud computing business and largest profit driver, have supported incremental quarter-over-quarter revenue growth in 2023, Amazon reported.

It has been a “great year for delivery and customer testing” for Gen AI services like Bedrock and its Amazon Q coding assistant, the company said.

The e-commerce giant rolled out its AI chips called AWS Inferentia in late 2023. Amazon said several enterprise customers, including Anthropic, Airbnb (ABNB) and Snap (SNAP), are using the chips.

Amazon’s earnings marked the beginning of JNAI’s monetization in the company’s enterprise segment, with CEO Andy Jassy saying he expects JNAI kThe company wants to provide an AI assistant to businesses, consumers and developers that will help the company better compete with Microsoft and Google.

Meta has championed openness among AI developers, unlike Microsoft and Google, who rely on closed AI models.

Apple is Working on JNAI, Announcements to Follow

So far, Apple has kept most details of its AI initiatives private, but expect to reveal more soon. about later this year.”

Cook said: “There is a huge opportunity for Apple with JNAI.” Earlier this year, Bank of America analysts raised their price target on Apple, saying the company could be profitable if AI capabilities are integrated into the iPhone.

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