AI Investments Drive Alphabet Earnings Surge and xAI Valuation Increase
The artificial intelligence sector remains robust, as indicated by Alphabet's earnings and investments in Elon Musk’s xAI.
Alphabet Earnings Report
Alphabet (GOOG and GOOGL) stock rose nearly 7% following better-than-expected earnings released Tuesday. The company reported a 35% increase in its Cloud business and a 12% rise in Search for Q3 2023. Google CEO Sundar Pichai noted the momentum in their Cloud product due to customer adoption of generative AI.
AI Investment Landscape
Investment in the AI sector continues to grow. Reports indicate that Musk is raising funds for xAI, potentially valuing it at $40 billion after a prior $6 billion funding round valued the startup at $24 billion. OpenAI also secured $6.6 billion this month, raising its valuation to $157 billion.
Upcoming Earnings Reports
Earnings reports from Meta and Microsoft are expected today. Analysts forecast an 18% revenue increase for Meta, driven by AI-driven advertising strategies. Microsoft will report third-quarter results shortly after announcing the integration of AI models from Anthropic and Google into GitHub's coding assistant.