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The Trillion-Dollar AI Showdown: Microsoft, Google, and Meta in the Race to Dominate Tech’s Next Frontier

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Artificial Intelligence (AI) has swiftly transitioned from a futuristic concept to a cornerstone of modern technology, reshaping industries and daily life. Leading this transformation are tech giants Microsoft, Google, and Meta, each investing billions into AI development. This article delves into their strategies, financial commitments, and the broader implications of this trillion-dollar AI race.

Microsoft: Integrating AI Across the Board

Microsoft has seamlessly woven AI into its suite of products, enhancing user experience and productivity. A notable example is Copilot, an AI assistant embedded in applications like Word and Excel, designed to streamline tasks and boost efficiency. This integration has resonated with enterprises; nearly 70% of Fortune 500 companies have adopted Copilot, with firms like Vodafone reporting weekly time savings of approximately three hours per employee.

Financially, Microsoft’s AI endeavors are yielding significant returns. In the fiscal quarter ending September 30, 2024, the company reported a 16% increase in revenue, totaling $65.6 billion. This growth was largely driven by Azure and cloud services, which saw a 33% increase in revenue, with 12 percentage points stemming from AI-related products and services.

To support this AI expansion, Microsoft has invested heavily in infrastructure. The company spent $20 billion in the recent quarter, evenly divided between building data centers and acquiring computing equipment like servers and AI chips. This substantial investment underscores Microsoft’s commitment to meeting the growing demand for AI services.

Google: Building a Comprehensive AI Ecosystem

Google’s approach to AI focuses on developing a complete stack, from hardware to software, to create powerful and efficient systems. The company has made significant strides in AI integration, with AI now generating about 25% of all new code at Google, subsequently reviewed by human engineers before deployment.

The impact of AI on Google’s services is evident. Google Lens handles over 20 billion visual searches each month, and AI-enhanced search features serve more than a billion people across 100 countries. In the business sector, Google Cloud, which houses the company’s AI services, grew 35% in the recent quarter, generating $11.4 billion in revenue.

To sustain this growth, Google invested $13 billion in the recent quarter, with $7 billion directed toward new data center construction specifically for AI. The company relies on a mix of custom Tensor Processing Unit (TPU) chips and Nvidia’s GPUs to power its AI initiatives.

Meta: Embracing Open-Source AI

Meta has taken a unique approach by adopting an open-source strategy for its AI development. This means making some of its AI tools and models available to the public, fostering collaboration and innovation within the programming community.

The integration of AI into Meta’s social platforms has been substantial. AI-driven recommendations have increased time spent on Facebook by 8% and on Instagram by 6%. In the advertising domain, over a million advertisers used Meta’s AI tools last month alone to create more than 15 million ads, boosting conversion rates by about 7% for businesses utilizing AI-generated images.

Meta’s commitment to AI is further demonstrated by its investment of $9.2 billion in the recent quarter, with around 60% allocated directly to servers and AI-specific hardware. The company follows a strict five-year cycle for updating its equipment, ensuring it remains at the forefront of technological advancements.

The Broader Implications

The combined efforts of Microsoft, Google, and Meta highlight a collective belief in AI’s transformative potential. In a single quarter, these three companies collectively generated approximately $182.5 billion in revenue, with a net income of about $66.7 billion. This excludes other tech giants like Amazon and Apple, underscoring the massive scale of investment and return in the AI sector.

However, these advancements come with challenges. Building data centers is a complex endeavor, often taking up to two years and requiring locations with sufficient power and cooling capabilities. Additionally, the energy consumption of these centers is significant, prompting companies like Google to commit to powering their AI data centers with nuclear energy, aiming to generate 500 megawatts of carbon-free power.





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BrowserStack launches AI-driven Low Code Automation tool

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Software testing platform BrowserStack has rolled out Low Code Automation, a solution to simplify test automation for quality assurance teams, developers, and non-technical users. 

The newly launched solution will address challenges faced by software teams, including manual testing delays and complex automation frameworks, BrowserStack said in a statement. 

While traditional test automation requires coding expertise by often limiting non-technical testers to contribute, this tool allows user—irrespective of their technical background—to create and manage AI-driven automated tests without writing code. Users can also use BrowserStack’s cloud infrastructure for reliable test execution.

“(The AI-powered Low-Code Automation (LCA) simplifies the process of building and maintaining test automation suites compared to traditional tools like Selenium. It reduces the steep learning curve and complexity often associated with automation projects, leading to a quicker return on investment (ROI),” Chintan Doshi, Director of Product Management at BrowserStack, told YourStory

To support development teams worldwide, Low Code Automation speeds up testing cycles, boosts product quality, and enhances user experience by reducing technical barriers. 

“Citizen testers—such as business analysts, product managers, and customer support teams—can easily add validations and create automated tests with the test recorder, without requiring coding skills. This reduces their dependency on developers and QAs and empowers them to actively contribute to testing efforts,” Doshi explained.

Founded in 2011 by Ritesh Arora and Nakul Aggarwal, BrowserStack provides a cloud-based platform for developers to test websites and mobile apps across devices, operating systems, and browsers on demand.

With headquarters in San Francisco and Mumbai, the company has expanded its product line to include over 15 products, of which 10 were launched in the past 18 months.

In August, the Accel-backed firm acquired Berlin-based Bird Eats Bug, an advanced bug-reporting tool. The acquisition aims to address the existing gaps in bug reporting and streamline fragmented testing workflows.





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Flipkart’s delivery arm Instakart reports widening losses, lower revenue in FY24

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Flipkart’s delivery service arm Instakart’s FY24 losses increased multifold to Rs 1718.4 crore, from Rs 324.6 crore in the previous year, hurt by higher expenses and marginally lower revenues. 

The company, which is in the logistics, warehouse, courier and allied services business, clocked an operating revenue of Rs 12,115.3 crore in FY24, 5% lower than Rs 12,787.4 crore it posted a year ago, according to filings made with Toefler. 

During the period, the company’s total expenses increased 6% to Rs 14,149.4 crore, mainly driven by employee benefit and other expenses. 

Logistics services accounted for the majority (about 78%) of Instakart’s total operating revenues, with Rs 9,429.8 crore, marginally lower than what it collected in the previous year.

Warehousing services, which accounted for about 10% of total operating revenues, witnessed a 28.4% drop in revenue, while collection services, which accounted for 12%, remained stable. 

Just a week ago, Flipkart Internet reported a 21% rise in FY24 revenue at Rs 17,907.3 crore helped by rising income from its advertising services.

Flipkart India Ltd, which is Flipkart’s business-to-business (B2B) arm, reported a 26.4% rise in revenue from operations at Rs 70,541.9 crore in FY24. 





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Google Cloud to boost support for early-stage AI startups with new programmes, partnerships

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Google has rolled out a range of programmes and partnerships to accelerate the growth of AI startups In India. The initiatives, announced at an AI Startups Summit in Bengaluru, will support early-stage AI founders in building, scaling, and expanding their customer base through the utilisation of Google Cloud services.

 

The tech giant recently introduced Emerging ISV Partner Springboard—a 12-week programme designed to fuel growth for AI startups. Participants will benefit from hands-on support in creating go-to-market assets, consultations with Google AI experts for product refinement, guidance on technical architecture best practices, and streamlined onboarding to Google Cloud Marketplace. 

“Google is committed to empowering AI startups to drive innovation and growth. These initiatives demonstrate our dedication to providing critical support and resources to early-stage founders, helping them build and scale successful AI-powered businesses,” said Manish Gupta, Senior Director, Research, Google DeepMind. 

During a fireside chat at the Global Google Cloud Summit, Google Cloud CEO Thomas Kurian applauded startups leveraging AI and cloud technology

“At Google Cloud, our mission is to support these pioneers by providing the essential tools, resources, and mentorship they need to thrive. Through strategic partnerships, tailored programs, and advanced infrastructure, we are committed to enabling businesses to scale their impact and drive the next wave of digital transformation,” said Kurian. 

Early-stage founders will receive enhanced support through the Google for Startups Cloud Program, which will offer $200,000 in Google Cloud credits over two years. AI-based startups will receive even greater support, receiving $350,000 in credits to address the demanding computational needs of advanced AI development, the company said in a statement. 

In addition, Google has collaborated with Y Combinator to provide exclusive access to NVIDIA H100 GPUs and Google Cloud TPUs, along with cloud credits, support, and mentorship for its Summer 2024 group of AI-focused startups.

Furthermore, the tech giant is also joining forces with early-stage accelerators and incubators such as 500, StartX, and Berkeley Skydeck to provide early-stage founders with a special package, including Google Cloud credits, expert advice, and technical workshops

Earlier, the California-headquartered firm also announced the launch of Startup School: GenAI, a four-week training programme designed to help startups leverage AI.





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