The article also highlights that the demand for AI-powered technology is real. Alphabet's revenue and net profit exceeded street expectations, but its cloud revenue fell short, which was not well received by investors. On the other hand, Microsoft's revenue and net profit also surpassed street estimates, with its "Intelligent Cloud" business group's revenue increasing by 21% year-on-year. This was well received by investors. The article suggests that the impact of AI on these results could provide valuable insights for startup founders.
Key takeaways:
- Generative AI technologies are being integrated into various software applications for businesses and consumers, and the financial results of this investment are starting to show.
- Alphabet and Microsoft's third-quarter results indicate that new AI tech is helping these companies grow their revenues, with AI growing in areas that indicate strong market demand for software that runs off generative AI.
- Alphabet's revenue and net profit beat street expectations, but its cloud revenue came in under expectations. Microsoft's revenue and net profit also beat street estimates, with revenue from its "Intelligent Cloud" business group rising 21% year-on-year.
- The impact of AI on these companies' results is significant, indicating potential conclusions for startup founders in the AI space.