AI Hype Translates to Revenue Growth for Some Tech Giants
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AI hype is turning into actual revenue for some tech companies like Palantir and Arm, boosting their stocks. Investors want proof of financial impact.
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Generative AI demand from enterprises is "unrelenting," per Palantir's CEO. Arm says AI licenses are increasing revenue.
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Microsoft and Amazon cloud businesses are also seeing AI demand drive growth. Azure revenue got a 6 percentage point boost from AI.
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So far only a handful of companies have seen financial gains from AI. Most won't get immediate benefits but AI will still profoundly change businesses.
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As generative AI matures, tools will make white-collar workers more productive by helping them summarize, read faster, and code faster. This could have a big economic impact.