How Big Tech is talking about AI this quarter

The AI hype isn’t over for the world’s largest tech companies. Yahoo Finance Senior Tech Reporter Dan Howley explains how big tech companies “continue to mention AI as a either reason for growth or potential for growth.” Howley mentions Meta, Alphabet, Intel and other big players who’ve made it a point to emphasize AI’s potential.

Video Transcript

RACHELLE AKUFFO: Well, artificial intelligence was the hype factor driving tech earnings in the first quarter. Is the trend continuing? Joining us now is Yahoo Finance Senior Tech Reporter Dan Howley. So, Dan, what are you watching?

DAN HOWLEY: That’s right, Rachelle. Throughout the, kind of, earnings that we’ve seen from some of the bigger tech firms, they continue to mention AI as either reason for growth or potential for growth. We’ve talked about Microsoft at first, they spent a good time discussing AI.

Obviously, CEO Satya Nadella really digging in on AI for the first half of the year with their partnership with OpenAI and the various products that they’ve launched with AI capabilities. And so, he really dug into that during the earnings call, providing investors and analysts with information on the different products that they’re launching and have launched, discussing the Microsoft 365 copilot pricing of $30, how that’s going to be a boon for them. And then, for Google and Meta, they seem to focus more on how AI is driving their advertising business.

Now, Google also touched on how it’s pushing enterprise. Meta discussed that as well with WhatsApp. But, really, the focus seemed to be on advertising and how AI is going to improve that whether that’s through the search generative experience, that’s the generative AI version of Google search, that’s an experiment right now. Or with the ability for advertisers to put together ads more quickly with generative AI on Meta side of things.

So they both, as I said, had enterprise discussions in their calls, but the bulk of it, or at least, the front load of it, was on advertising. And then for Amazon and Intel, they were speaking more about the opportunity that provides. Andy Jassy going over how AWS, the company’s own custom chips and inferences, as well as its bedrock platform are going to be big pieces of their AI capabilities moving forward. And Intel’s Pat Gelsinger, mentioning how the CPU side of the server business is still sluggish, but that moving forward.

There’s a larger total addressable market that they’ll start to see in 2024 and beyond. So, a lot of these companies, obviously, continuing to focus on AI. I mean, if you go through their earnings reports and you do a control search for control F for AI, it’s incredible how often they mention it. The one big company that doesn’t mention it is Apple, and they did that again in their most recent quarter.

The only time, in fact, that Tim Cook actually talked about AI was when Deutsche Bank analyst Sidney Ho had brought it up, asking where he sees the company– or where Tim Cook sees the company taking advantage of it. And he basically said, yeah, you know, it’s built into all our products, that’s just how we roll. And that’s just Apple’s Mo. They’re not going to talk up the technology. They’re going to talk up the products that the technology powers.

So, yeah, a real, kind of, continuation of the themes we’ve seen for AI for these big tech companies. And then we also had Palantir released their report. They’re a big AI player.

A focus on AI, their data analytics firm with AI backing their capabilities, they’re not going to be as big as something as Google or Microsoft. They’re more focused on governmental contracts, things along those lines. But they did boost their outlook for the full year. So AI clearly continues to be a big play going forward.

RACHELLE AKUFFO: And certainly high standards indeed with some analysts divided, at least, though, calling piloted the Leo Messi of AI. We’ll have to see about that. But a big thank you there to our very own Dan Howley.

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