"We look forward to continuing this journey in what is a generational shift in the largest software category: search." "As we look toward a future where chat becomes a new way for people to seek information, consumers have real choice in business model and modalities with Azure-powered chat entry points across Bing, Edge, Windows and OpenAI's ChatGPT," Nadella said on the call. There's endless talk about AI, alongside the company's $13 billion commitment to OpenAI. Microsoftĭuring Microsoft's earnings call on April 25, executives said the conglomerate will continue to narrow its focus, prioritizing its cloud business, which is seeing an increase in short-term customer contracts. The company will also move to better manage supplier and vendor costs, plus use AI and automation to "improve productivity across Alphabet," said Ruth Porat, chief financial officer. "Beginning in the second quarter of 2023, the costs associated with teams and activities transferred from Google Research will move from Google Services to Google DeepMind within Alphabet's unallocated corporate costs," Pichai said.Īlphabet also plans to look at ways to potentially reduce its real estate portfolio and save on compute costs, in part through efforts to improve training efficiency for AI models and by utilizing data centers more fully, Pichai said. Schindler highlighted the "ability of Search to surface demand and deliver a measurable ROI in an uncertain environment," preceding the company's announcement Wednesday it would bring AI into Google Search.īesides the January layoffs, which hit about 12,000 employees, or 6% of Google's workforce, Pichai mentioned more structural changes on the call, including bringing AI-focused groups Google Brain and DeepMind under one umbrella with "pooled computational resources." On Alphabet's first-quarter earnings call, executives discussed efforts to allocate resources to key areas such as cloud, AI, hardware, YouTube and search. ![]() It all comes after Pichai announced plans last year to "make the company 20% more productive." It has conducted mass layoffs slowed hiring cut travel and entertainment budgets paused construction on at least one office campus and reduced investment for more experimental projects, such as its Area 120 tech incubator. Google parent Alphabet has spent the past few months dealing with the types of cuts the company never had to experience in its first quarter century. In their earnings reports, company executives walked a tightrope in reminding investors of the importance of spending in those areas while maintaining diligence with broader cost cuts. tech companies - Microsoft, Apple, Meta, Amazon and Alphabet - two big areas for increased investment are cloud infrastructure and AI initiatives. For many tech leaders, the planned path forward is to continue to reallocate headcount and spending toward revenue drivers, and to look at how to decrease long-term costs for compute, supply chain and inventory.īetween the most-valuable U.S. ![]() Throughout earnings season, executives cited macroeconomic pressures, foreign exchange headwinds and cautious spending by clients and consumers. Jeff Green, CEO of digital ad-buying company Trade Desk, said content owners are dealing with a challenging market to try and grow profitably, "so what that means is people need to do more with less" as they seek to get better value from their ads. That phrase has found its way into several recent tech earnings calls. In the company's earnings call in late April, business chief Philipp Schindler described a "macro environment of do more with less." Personal Loans for 670 Credit Score or LowerĮven as industry giants are enjoying rebounding stock prices from a brutal 2022, they're making it clear customers will be conservative with their spending for at least the near future and the days of tech excess are behind us.Īlphabet CEO Sundar Pichai, who has taken flak from his workforce for receiving a stock award of over $200 million while the company downsizes, has been focused on efficiency. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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