Alphabet Cloud Growth Slows While Microsoft Cloud Soars, Reflecting AI Spending Cuts Amid Economic Fears
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Alphabet's cloud division misses revenue estimates as growth slows to 22.5%, its slowest in at least 11 quarters.
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Microsoft's cloud business booms in contrast, with Azure revenue up 29%.
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Fears of slowing economy have led companies to curb spending on expensive AI tools, impacting Google Cloud.
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Alphabet beats profit and sales estimates overall, but stock drops due to cloud slowdown.
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Alphabet lays off 12,000 employees this year amid "different economic reality" and charges $2.1 billion in severance costs.
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