Microsoft and Google in artificial intelligence competition: more investment than benefit

According to news on July 26, although artificial intelligence is expected to bring huge returns to technology giants such as Microsoft and Alphabet, these companies say that they need to conduct deeper research before the benefits begin to be realized. INVESTMENT

As new data centers are built to support artificial intelligence services, Microsoft said costs will increase significantly. Purchasing chips from companies such as Nvidia for use in data centers will lead to continued growth in capital expenditures

According to analysts, Microsoft’s costs in the field of artificial intelligence mainly include two aspects: First, developing its own products, such as the upcoming launch The $30-per-month Copilot AI assistant; the second is to provide support for companies that want to use Microsoft's Azure cloud computing service to develop artificial intelligence products

Starting in the first half of next year, Microsoft executives expect the service to become a major revenue Source

Creative Strategies CEO and chief analyst Ben Bajarin said that they are purchasing Nvidia’s flagship chip H100 in large quantities for artificial intelligence

Bajarin further pointed out that in the future It's possible you'll see something similar on Amazon within a quarter, as both companies are the cloud computing platforms currently used by most people in the market to train artificial intelligence systems

Although for a limited time, Alphabet has done a great job controlling costs. Ruth Porat, Alphabet's chief financial officer who will serve as president and chief investment officer, cited lower-than-expected capital spending in the second quarter as a result of delays in data center construction

Global market advisory firm Third Bridge Scott Kessler, head of tech media and telecommunications, noted that although Google has invested more than $200 billion in artificial intelligence over the past decade, the company has not been fully recognized by users and investors.

According to analysts, Google has a competitive advantage because they have their own customized chip, the Tensor Processor Unit (TPU), which can be used to handle artificial intelligence tasks to achieve cost reductions. Reduce

Microsoft may buy Nvidia chips in large quantities because they don’t have its own alternatives, Atlantic Securities analyst James Cordwell said

although Google plans to continue using own chips, but they also acknowledged that they will buy chips from other companies, which Porat said could have a negative impact on profits and growth

Gene Munster, Deepwater Asset Management Managing partner of Asset Management, said Microsoft and Google agree on the inflection point, but Microsoft investors expect more demonstrations

The above is the detailed content of Microsoft and Google in artificial intelligence competition: more investment than benefit. For more information, please follow other related articles on the PHP Chinese website!