Microsoft, Google beat earnings expectations amid AI frenzy

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SAN FRANCISCO: Tech titans Google and Microsoft announced better-than-expected earnings on Tuesday as the frenzy over artificial intelligence stokes investor excitement and breathes new life into the sector.

The release of ChatGPT last year landed as technology giants were embarking on major layoffs and cost-cutting plans, with share prices hammered after flying high during the coronavirus pandemic.

For the second consecutive quarter, Microsoft has more than reversed the trend, seeing profits and sales soaring to the highest levels ever for the 48-year-old company co-founded by Bill Gates.

An earnings statement reported that net profit for Microsoft was US$20.1 billion in the April to June period, up 20% year-on-year and above expectations.

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