Gemini wasn't as warmly embraced as ChatGPT, and Google suspended its image generation tools earlier this year after it generated historically inaccurate pictures. Google had been developing its own large language model (LLM) called LaMDA, but it wasn't publicly available when OpenAI's ChatGPT arrived in late 2022. Alphabet's AI efforts are off to a rockier startĪlphabet's Google developed plenty of machine learning and AI algorithms to process the massive amounts of data across its ecosystem, but it's arguably falling behind Microsoft in the generative AI race.

For fiscal 2025, they expect its revenue and earnings to increase 14% and 15%, respectively. Its operating margins still expanded year over year in the first nine months of fiscal 2024, even as it scaled up its AI infrastructure and integrated its recent acquisition of Activision Blizzard.Īnalysts expect Microsoft's revenue and earnings to grow 15% and 19%, respectively, in fiscal 2024 (which ends this June). The rapid expansion of Microsoft's cloud and AI businesses is offsetting the slower growth of its PC, gaming, and enterprise-facing software businesses.

Its 'Azure and other cloud services' revenue rose 31% year over year in the third quarter of fiscal 2024 (which ended on March 31), accelerating from its 30% growth in the second quarter and 29% growth in the first quarter. Those AI upgrades are enabling Azure - the core growth engine of the Intelligent Cloud business which generate 43% of its revenue in its latest quarter - to grow faster than AWS and GCP.

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