Microsoft and Alphabet Race to Lead the AI Revolution
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Microsoft invested heavily in AI startup OpenAI, maker of ChatGPT, becoming an AI leader. Alphabet was slower to embrace AI but is now investing heavily.
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Some worry AI could disrupt Google Search, but Alphabet is likely to find new ways to profit from AI queries. Microsoft's Bing poses little threat currently.
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Both Microsoft's Azure and Alphabet's Google Cloud are seeing strong growth from AI offerings.
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Microsoft is adding AI "Copilots" to products like GitHub and Microsoft 365, seeing good adoption. Alphabet launched new AI tools for music and images.
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Both stocks offer ways to play the AI boom. MSFT trades at higher valuation; GOOGL looks cheaper with more skepticism to overcome.