Microsoft and AI – level 3

Microsoft and AI

30-10-2023 07:00

In the latest financial quarter, Microsoft’s cloud business, particularly its Azure cloud-computing platform, showed significant growth due to investments in artificial intelligence (AI).

This growth outpaced Wall Street estimates, resulting in a 5% increase in Microsoft’s shares. On the other hand, Google-parent Alphabet’s cloud business struggled, with a 7% drop in Alphabet’s shares. Despite exceeding profit and sales expectations, Alphabet’s inability to demonstrate competitive gains in AI against Microsoft’s Azure and Amazon’s AWS cloud services disappointed investors.

Microsoft’s strong messaging on AI technologies like Copilots and GenAI contributed to its success. The company’s substantial investment in AI startup OpenAI has also paid off, with AI technology integrated into its products like Bing, Microsoft 365, and Github. In contrast, Alphabet focused on snaring AI startups as cloud customers, while Microsoft leveraged existing relationships to secure larger clients.

Difficult words: outpace (to improve faster than), snare (to catch), leverage (to use to a maximum advantage).

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What competitive strengths have enabled Microsoft to eclipse Alphabet's cloud business in terms of AI technology?

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