Duel for Artificial Intelligence: Google and Microsoft Locked in a Battle

  • Legal disputes and antitrust proceedings further fuel the competition between the two companies.
  • Google and Microsoft Intensify Their Rivalry in the Technology Sector, Particularly in Cloud Services.

Eulerpool News·

Google's latest financial results show that its cloud services sector experienced impressive growth, with revenues reaching $11.4 billion, marking a 35% increase and surpassing expectations. According to Google’s Chief Financial Officer, Anat Ashkenazi, this sector is now one of the key revenue drivers for the company, right behind its popular search engine. Despite growing competition and legal battles in the field of Google Search, Google Cloud is increasingly gaining momentum compared to major competitors such as Amazon Web Services and Microsoft Azure. Paul Meeks from Harvest Portfolio Management sees indications that Google recently managed to gain market shares in cloud infrastructure. It is interesting to observe how Microsoft, for its part, is demonstrating strength in its cloud business. With $38.9 billion in revenue, Microsoft exceeded forecasts and showed annual growth in its Intelligent Cloud segment by 20%. The rivalry between tech giants now spans many areas—from search engines to artificial intelligence. The conflict between Google and Microsoft dates back a long time. Following a historic antitrust lawsuit against Microsoft concerning the dominance of Windows, a settlement in 2002 created room for competitors like the then-burgeoning startup Google. Although the companies agreed on a truce in 2016, competition has recently reignited, especially due to current antitrust proceedings. A notable point of the recent tensions between Google and Microsoft is Microsoft's accusation that Google is trying to secure its dominant market position through unfair means. Moreover, a court recently ruled that Google monopolized its search engine illegally, a judgment that could have repercussions in a subsequent trial. Currently, the technological-political clash particularly impacts the areas of cloud services and online advertising. Microsoft accuses Google of distorting competition in the cloud market through diversionary tactics. Nonetheless, Alaily from Microsoft remains convinced: Google can compete with AWS and Azure even without regulatory support.
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