Quarterly figures from Microsoft, Google, Amazon and Meta: Cloud and advertising business ensure profits, there is no AI boom for the time being.

Quarterly figures from Microsoft, Google, Amazon and Meta: Cloud and advertising business ensure profits, there is no AI boom for the time being.

According to a report in the Neue Zürcher Zeitung, the major American tech companies Microsoft, Google, Amazon and Meta (formerly Facebook) placed a strong focus on growth in the cloud division in their quarterly figures. Microsoft in particular was able to benefit from the increasing demand for cloud offerings for artificial intelligence (AI). Meta also boasted a rapidly growing advertising business. However, the effects of the AI ​​boom on the balance sheets of tech companies have not yet been as noticeable as expected. Although new AI products were introduced, they were not yet available to all users in the past quarter. It also remains unclear exactly how the AI ​​applications should be monetized.

Microsoft has taken a leading role in this area, particularly through its collaboration with chat GPT operator Open AI. The company will launch Microsoft 365 Copilot, an AI assistant for Outlook, Word, Powerpoint and Teams, in November. Microsoft hopes that companies will be willing to pay $30 per user per month for this service. Microsoft's advertising revenue increased 10 percent in the search and news segments. Google is taking a more defensive and cautious approach to implementing AI applications, while Meta will introduce new AI chatbots. Microsoft is a leader in the cloud business; its Azure cloud business has grown by 29 percent compared to the previous year. Amazon recorded growth of 12 percent in the AWS cloud segment. Google, on the other hand, suffered a setback as growth was only 22 percent. In terms of advertising business, Meta and Google have recovered. At Meta, advertising revenue increased by 24 percent compared to the previous year, and at Google by 10 percent. Amazon also reported 26 percent growth in its advertising business. All four companies announced that they would increase their investments in AI infrastructure in the coming year.

This development has potential impacts on the market, consumers and the industry. The increasing demand for cloud solutions for AI applications means that companies like Microsoft and Amazon can continue to expand their cloud businesses. This can lead to increased competition in the market and provide consumers with more choice and more advanced AI applications. At the same time, the question arises about the monetization of AI products, as this is still unclear. The positive developments in the advertising business show that companies can recover from the negative effects of changing privacy settings and offer more effective advertising campaigns. The increased investment in AI suggests that companies are committed to the long-term success of AI and want to develop new innovative applications. However, it remains to be seen how well these applications will be accepted in the market and how they can be monetized.