After introducing AI into the tech stack, Microsoft’s revenue increased 18%.

Big tech giants Microsoft and Alphabet — Google's parent company — released earnings last quarter on January 30, including highlights on artificial intelligence (AI) and cloud computing, among others.

Last year, AI was one of the most popular topics in the tech industry, with a global market size of $196.6 billion by 2023. Microsoft and Google were among the leaders in the AI ​​development space in 2023, both with their own high-level chatbots.

Microsoft saw accelerated sales at the end of the year, with its AI tools being a major reason. According to the report, the company's revenue rose 18% year over year to $60 billion from September to December.

In Q4 earnings, Microsoft Chairman and CEO Satya Nadella commented on Microsoft's AI developments:

“We've moved from talking about AI to implementing AI at scale. By incorporating AI into our entire technology portfolio, we're winning new customers and enabling new benefits and productivity gains across the board.

These year-end results put Microsoft in the lead as the world's most valuable public company, surpassing Apple by $3 trillion.

Along with its AI offerings, sales of Microsoft's cloud computing service Azure rose 30% year-over-year, better than industry analysts' estimates. The company's gross profit for Q4 increased by 33% year-over-year, reaching $21.9 billion.

Microsoft in 2010 2024 saw the launch of AI chatbot Copilot Pro, which includes the ability to create custom GPTs and office integration. However, he entered the new year with OpenAI caught up in a major copyright lawsuit against the New York Times.

Cointelegraph has reached out to Microsoft for more information.

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Alphabet similarly credited its AI integrations as a key reason for Q4's success. The company's CEO, Sundar Pichai, said he was pleased with the strength of Google Search and the growth of YouTube and Cloud.

“Each of these are benefiting from AI investments and innovations. The best is yet to come as we enter the Age of Gemini.”

It reported consolidated revenue of $86 billion for Q4, a 13 percent year-over-year increase.

Ruth Porat, president and chief investment officer, said Alphabet is committed to “sustainably reinventing its cost base” to invest in and support new growth opportunities.

Google has already started the year outlining plans to cut jobs to achieve its ambitious goals, including AI. In the year In January 2023, it announced a 6% reduction in its global workforce and in September 2023, the company announced 182,381 layoffs worldwide.

However, Google started the year with the release of a new true AI text-to-video generator called “Lumiere,” which uses a spatio-temporal distribution model to convert text and images into realistic AI-generated videos with on-demand editing capabilities. .

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