Microsoft and AI – level 1

30-10-2023 07:00

Another financial quarter ends. Microsoft does very well. Especially its cloud business.

Microsoft’s shares go up 5%.  It happens mainly because of the Azure cloud. At the same time, the cloud business of Google’s parent company Alphabet does not do so well. Experts are not happy about this. Alphabet’s shares go down by 7%. Alphabet makes more money and sells more products. But the company wants to see better results in artificial intelligence (AI). They want Alphabet to do better than Microsoft’s Azure and Amazon’s AWS cloud businesses.

Microsoft talks a lot about AI technology, like Copilots and GenAI. This helps them very much. People know the products and buy them. Microsoft also gives money to a startup called OpenAI which runs its AI chatbot ChatGPT. Microsoft uses AI in many of its products, like Bing, Microsoft 365, and Github.

Difficult words: quarter (three months), share (one of many parts of a company which a person or organization can buy), startup (a new business).

You can watch the original video in the Level 3 section.

What are some advantages that Microsoft has compared to Alphabet in the AI business?


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