Microsoft and Google (parent company Alphabet's) have released their financial reports for the quarter ended March 31, 2024, and they have each achieved significant growth due to the positive impact of generative AI such as ChatGPT.
According to the data, Microsoft's revenue increased by 17% year-on-year to $61.9 billion, exceeding the expectations of Wall Street analysts, and net profit increased by 20% to $21.9 billion. Diluted earnings per share of $2.94, up 20%
This is mainly due to close cooperation with ChatGPT's parent company, OpenAI, for example, with the help of Copilot, Office365 commercial revenue increased by 15%, and Microsoft's Azure cloud service also achieved 31% growth, of which AI services contributed 7%.
During Microsoft's earnings call, AI was mentioned more than 50 times, emphasizing its importance to the company's overall strategy.
Since integrating OpenAI's GPT family of models, Microsoft's search engine Bing has seen significant growth in downloads and usage, and now has more than 100 million daily users.
Microsoft's stock price rose 3.84% after the earnings report.
Google's latest earnings report showed that revenue increased 15% year-on-year to $80.5 billion, and profit soared 57% year-on-year to $23.7 billion.
Google's cloud business, Google Cloud, saw revenue grow 28% to $9.57 billion, and revenue more than quadrupled to $900 million. Among them, generative AI and large model tailoring play an important role.
During its earnings call, Google also repeatedly emphasized the importance of generative AI to its business development.
Google CEO Sundar Pichai highlighted the contribution of Google Cloud, which is now being welcomed across regions by offering generative AI services through its Gemini family of models.
Ruth Porat, Google's chief financial officer, noted that Google's cloud division generated $9.6 billion in revenue, and generative AI is playing an increasingly important role in this growth.
Shares of Google rose 11.5% after the earnings report.
Meta's latest financial report shows that revenue increased by 27% year-on-year to $36.4 billion, but net profit fell by 24% year-on-year.
Meta said in its earnings plan that it will increase spending on AI, and expects to invest between $3.5 billion and $40 billion in 2024, up from $30 billion to $37 billion previously.
Meta co-founder and CEO Mark Zuckerberg emphasized that the release of the new version of Meta AI and Llama-3 is a key step towards building world-leading AI applications and large models, and continues to make steady progress in the development of virtual universes.
In the future, Meta will continue to increase its investment in the AI field for a long time. But because Meta's investment in AI may not be as quick as Google and Microsoft in the short term, Meta's stock price fell by about 10% after the earnings report.