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Amazon, Microsoft, and Alphabet are doubling down on AI for the cloud — and it seems to be paying off [Business Insider]
Last amazon.com, inc. earnings: 4/30 04:01 pm
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These cloud providers see AI as a key growth opportunity despite concerns around hype. Some of the biggest tech companies are spending big on AI, which appears to be boding well for their cloud businesses. Over the last two weeks, major cloud providers Amazon, Microsoft, and Alphabet have reported quarterly earnings that exceeded Wall Street's expectations. That's partly because their investments in AI appeared to have bolstered revenue in their cloud divisions, which are made up of data servers that customers use to power and train their AI models. Amazon, Microsoft, and Alphabet's shares also climbed after earnings were reported, evidence that doubling down on their AI strategies seems to be paying off. "AI contributed to an acceleration of growth at those companies' cloud businesses," D.A. Davidson Companies analyst Gil Luria told Business Insider regarding Amazon, Microsoft, and Alphabet. "These three hyperscalers are seeing significant customer demand and are investing to
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