The article suggests that the success of these tech giants in selling AI-powered tools and services will indicate the readiness of the tech-buying market to invest in new software. Positive results from Microsoft and Alphabet could be good news for startups. However, another quarter of heavy spending on infrastructure with future revenue discussions could be less optimistic.
Key takeaways:
- Microsoft, Alphabet, Meta, and Amazon are set to report their third-quarter financial results, with a focus on the impact of their investments in AI-related computing tasks and products.
- Previous results indicated that while costs related to AI were increasing, the resulting revenue was more a future prospect than a current reality.
- The speed at which these tech giants can convert market interest in AI into revenue will indicate the readiness of the tech-buying market to invest in new software.
- If these companies report strong AI-related results, it could be positive news for startups. However, continued heavy spending on infrastructure with only future revenue prospects could be less encouraging.