AXIOS April 26, 2024
Both Microsoft and Google parent Alphabet reported strong earnings Thursday in the midst of a fierce AI race that has jolted both companies — and offered investors the hope that there’s still room for these giants to grow.
Why it matters: Traders punished Meta a day earlier when it made clear its AI investments would take time to pay off, but Microsoft and Google both found more favor with the market.
The big picture: The huge “frontier models” that lead the AI race — like OpenAI’s GPT-4, which Microsoft uses, and Google’s Gemini — cost a fortune to train and operate.
- But both Microsoft and Google can balance their own investments in AI development with revenue from hosting other...
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