Microsoft's Revenue Soars 18%, AI Growth Skyrockets; Alphabet Rakes in $86B, AI Drives Core Success
January 31, 2024
Microsoft's revenue surged to $62 billion, marking an 18% increase, with Microsoft Cloud driving more than half of the revenue due to a 24% year-on-year increase.
CEO Satya Nadella credited AI application at scale for new customer acquisitions and productivity enhancements, with Azure and cloud services growing by 30%, and AI business doubling to a $4.4 billion run rate in a year.
Microsoft's fiscal second-quarter earnings exceeded expectations, propelled by cloud services and AI demand, while the company's AI growth outpaced Azure's historical growth.
Alphabet's Q4 2023 revenue hit $86.31 billion, up 13% from the prior year, with annual revenues reaching $307.39 billion, a 9% increase due to strategic AI investments in services like Google Search and Cloud.
Google's AI advancements have improved search response times and advertiser performance, though they raise concerns for publishers dependent on Google traffic.
SEO and advertising professionals are advised to adapt their strategies to the evolving AI landscape within Google's ecosystem to maximize benefits and minimize risks.
Summary based on 21 sources