Tech giants are pouring money into AI as they cut costs elsewhere.

11 May 2023

Alphabet, Microsoft, Amazon, and Meta reported quarterly results, highlighting their focus on improving efficiency amidst growing economic concerns. A key investment area for these mega-cap tech companies is artificial intelligence (AI) and large language models (LLMs) like ChatGPT.

 Generative AI programs, which produce human-like outputs such as text, code, or images, demand significant amounts of data, processing power, and specialized supercomputers. The tech CEOs emphasized the substantial investments required to develop and implement these AI applications during their earnings calls.

Alphabet posted better-than-expected first-quarter revenue and earnings, even as advertising revenue declined slightly. The company announced a $70 billion share buyback, and CEO Sundar Pichai noted their “good progress” in AI. Alphabet aims to integrate generative AI advancements into its search engine to maintain market dominance.

Microsoft reported a 7% increase in overall revenue compared to the previous year, marking the second consecutive quarter of single-digit growth. A surprising standout was the company’s More Personal Computing unit, which generated $13.3 billion in sales, surpassing the company’s guidance range.

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