Microsoft and Google, the two US tech giants, are making financial progress
Google must defend its status in artificial intelligence (AI), as Microsoft has clearly gained the upper hand in this sector. Pixabay/Geralt
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The financial results for the first quarter of 2023 of both firms are better than expected, in a context of global economic slowdown. Microsoft tops Google at the pole, boosted by the Cloud and artificial intelligence.
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Microsoft posted a net profit of more than $18 billion, up 9.5% year-on-year. And it is the cloud, that is to say the possibility of having access from any computer to personal data via external servers, with the rise of teleworking that saves Microsoft money. Cloud revenue jumped 22% year-on-year to $28.5 billion. This branch now accounts for more than half of its turnover.
Another strong point of Microsoft: artificial intelligence (AI). The group integrated Chat GPT into its Bing search engine, which revived it, facing its rival Google. It now wants to put this new technology at the service of all its products, from Word word processing to Outlook emails, including Teams.
► Read also: Microsoft official and majority partner of OpenAI, the company creator of ChatGPT
For its part, Alphabet, the parent company of Google and YouTube, also exceeded forecasts, with a net profit of $ 15 billion.
Despite better than expected results, the Californian group is suffering from the decline in online advertising, linked to the decline in consumption. Its subsidiary YouTube also faces stiff competition from the TikTok network, which is very popular among young people.
Google, which laid off about 12,000 people in January (6% of its workforce), and revised downwards its real estate plans, must at the same time defend its status in artificial intelligence (AI), Microsoft having clearly gained the upper hand in this sector.
► Read also: TikTok: a social network even more dangerous than Facebook, Instagram or Twitter?
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