Two of America’s biggest companies posted strong results last night as they continued to battle for supremacy in the race to corner the market for artificial intelligence (AI).
Computing giant Microsoft reported that its profits for the three months to the end of June had risen 20 per cent to £15.6billion, while revenue rose 8 per cent to £43.6billion.
The latter figure was ahead of analyst estimates.
Microsoft reported a 20% rise in profits for the three months to the end of June
The tech firm flagged that the results had been boosted by demand for its cloud computing services, while boss Satya Nadella said the firm ‘remained focused’ on driving forward the development of its AI capabilities.
Google parent Alphabet, meanwhile, reported a profit of £14.2billion for the period, up from £12.4billion the previous year while sales rose 7 per cent to £57.8billion.
The firm also announced its chief financial officer Ruth Porat would be stepping down to take up a new role as president and chief investment officer at the company, although she will continue to act as finance boss until a replacement is selected.
The figures come as the two major tech firms scramble to take advantage of the surge in interest in AI technology in a bid to boost profits following a slowdown in the sector as rising interest rates and inflation hit growth prospects.
AI exploded in popularity this year when Microsoft-backed OpenAI released ChatGPT, a computer program that can write text and answer questions in a manner similar to a human.
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