The good news: Microsoft's Azure cloud service is the largest in the world alongside Amazon Web Services (AWS). Azure says it uses AI accelerators from Nvidia, AMD, and its own Azure Maia to train language models. Microsoft has 53,000 Azure-KI customers, more than a third of whom are new customers in the past 12 months. Microsoft owns 49 percent of Sam Altman's startup OpenAI. Last quarter, Microsoft began introducing its latest OpenAI models, such as GPT-4 Turbo, GPT-4 with Vision, and Dell-E 3.
There is also growing use from AI startups like Moveworks, Perplexity, SymphonyAI, and some of the largest companies in the world. More than half of the largest Fortune 500 companies use Azure OpenAI today.
Programmers adopted KI through GitHub Copilot, where revenue rose 40 percent in one year. MSFT now has 1.3 million GitHub Copilot subscribers, which represents a 30 percent increase. In the previous quarterly presentation, Microsoft said that the company would be cautious in using artificial intelligence. Caution is gone in this quarterly presentation. The company says it has moved from talking about artificial intelligence to implementing it on a large scale.
Organizations will find value in spending a few kroner to test a Sales Copilot, a Service Copilot, a Security Copilot or a Github Copilot. Then they'll evaluate whether the savings are worth the price Microsoft charges.
Bad news: Alphabet has bought hundreds of technology companies in the past decade. The company gets 80 percent of its revenue from digital advertising around search services. Alphabet identified itself early on as an AI company, but didn't dare invest fully. The upside is very small compared to the risk of disrupting one of the most profitable digital money machines the world has ever seen.
Bad news: Economic growth is created by population growth and productivity growth. The United States was unable to raise the latter rate by more than 1.0 percent annually. year, according to Alan Greenspan in the book An era of turmoil. This is despite all the inventions that have been introduced. Kastle.com controls access to 2,600 buildings in 47 states in the USA. For the 10 largest cities average, it is now 48.5 percent on average who work in offices. Using AI tools combined with access to working from home can be a win-win for all parties if someone can manage it.
AI was supposed to give us self-driving taxis by now. We did not receive that. Instead, we get so many different AI tools that half of Fortune 500 customers have already adopted them. This is pure yo-yo fever. All customers have purchased AI tools this year. So there probably won't be much growth in AI next year.
During the dot-com bubble at the turn of the millennium 25 years ago, we got cell phones and the vision of broadband Internet served by young CEOs in T-shirts and Bermuda shorts. In this cycle, short leaders spent their time tricking people into buying cryptocurrency tokens.
There is no broad investment appeal in a theme where Microsoft shares, which are priced at 35 times earnings for the year with an annual dividend of 0.70 percent, look set to become the biggest player in the AI sector. Artificial Intelligence is shaping up to be one of the least inspiring investment bubbles in history for stock investors.
“Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst.”