Artificial Intelligence: Microsoft vs Alphabet in Competition

The technological leadership of Microsoft and Alphabet in the field of Artificial Intelligence (AI) offers investors interesting perspectives. Both corporations are deeply rooted in AI research and development. While Microsoft has invested billions in the company OpenAI, which sparked the current AI euphoria with ChatGPT, Alphabet developed the groundbreaking Tensor Processing Unit that accelerates data processing by AI computers. Microsoft stands out by integrating AI into a broad spectrum of its services. Examples include the Copilot AI, which assists customers in Office software, and an AI-supported recruitment assistant on LinkedIn. The company is experiencing growing interest: the use of the Azure cloud platform by external companies to develop their own AI applications has doubled in the past six months. The economic success of Microsoft's AI strategy is also reflected in its business figures. CEO Satya Nadella forecasts revenue run for the next quarter of over 10 billion USD, making Microsoft's AI business the fastest-growing sector in the company's history. In the first quarter of the fiscal year, revenue rose by 16% to 65.6 billion, and net profit increased by 11%. Alphabet, on the other hand, uses its AI competencies to further develop its range of offerings. For example, on Pixel smartphones, AI-powered search can be activated with a simple tap—a small but fine change that benefits users. Additionally, already a quarter of the Google software code is written by AI. The Google Cloud offers companies similar opportunities as Microsoft's Azure, with social media providers like Snap already working with it. In view of these developments, the question arises: Which of the two tech giants offers the better investment potential in the field of Artificial Intelligence? An answer to this could be as complex as the technology itself.