Tech Giants Jockey For Position At Dawn Of AI Age

San Francisco, (APP – UrduPoint / Pakistan Point News – 6th Nov, 2023) Whether they sell smartphones, ads or computer chips, the heavyweights of Silicon Valley have everything to prove to investors looking to see who is best placed in the race to dominate the generative artificial intelligence market.

“If you’re a company, and you don’t have an AI message, you’re not going to be in business very long,” says independent industry analyst Jack Gold.

“Everyone is focused on AI right now. And everyone’s trying to outmarket and out-hype everybody else. And there’s room for a whole lot of players.”

Over the past two weeks, tech’s top companies released their corporate earnings reports for the July-September quarter.

Most of them beat analyst expectations, but on Wall Street, all eyes were on plans for generative AI, popularized by the ChatGPT chatbot, OpenAI’s interface that was launched a year ago and dazzled the world.

The parent company of Google, the world leader in online advertising, saw its profit jump 42 percent in the third quarter to nearly $20 billion — well above market estimates.

Shares in Alphabet however dropped more than 10 percent over two sessions because Google Cloud, though expanding, was seen as disappointing.

For Max Willens, an analyst at Insider Intelligence, while the division’s credibility among AI startups could “bear fruit in the long run, it is not currently helping Google Cloud enough to satisfy investors.”