However, some tech leaders remain cautious about AI's potential. Matthew Prince, CEO of Cloudflare, predicts an "AI letdown" in the coming months. Despite this, Nvidia, a leading maker of AI-powering chips, reported $22.1 billion in revenue, partly due to increased AI demand. Microsoft and Alphabet also reported profits attributed in part to their AI sectors, with Microsoft's Azure cloud computing platform and Google's AI model, Gemini, driving growth.
Key takeaways:
- Major companies like Apple, Meta, Google, and OpenAI are investing billions to trillions of dollars in artificial intelligence (AI), despite it not generating much revenue yet.
- Meta's stock fell despite beating sales expectations, largely due to its heavy investments in AI and modest revenue projections. CEO Mark Zuckerberg reassured investors that this downturn is temporary.
- Elon Musk, during an earnings call, insisted that Tesla is an AI company and had a strong message for any shareholder who doubts that Tesla will develop self-driving technology.
- Microsoft and Alphabet reported profits attributed in part to their respective AI sectors. Both companies have seen growth due to their cloud computing platforms, which include generative AI services.