The Motley Fool·2025-12-03 15:00Core Insights - The competition for AI supremacy is intensifying between Alphabet and Microsoft, with Alphabet leveraging its Gemini model and Microsoft utilizing Copilot alongside OpenAI and Nvidia [1][2] Alphabet's Strategy - Alphabet's Gemini has rapidly gained market share, especially after the launch of Gemini 3, becoming the second most popular mobile app on the App Store [3][4] - Gemini reached 650 million monthly active users (MAUs) last quarter, making it one of the fastest-growing consumer internet products in history [4] - Direct revenue from Gemini is included in Google subscriptions, which grew 21% year over year to $12.87 billion [5] - Indirect revenue sources from Gemini include Google Search, which generated $56.6 billion, and Google Cloud, which generated $15.1 billion and grew 34% year over year [6] Microsoft's Strategy - Microsoft's Copilot, integrated within Office 365, has 150 million monthly users but is more popular among enterprise customers than general consumers [8][9] - Microsoft has a significant relationship with OpenAI, with $250 billion in future spending on Microsoft Azure, which is growing 40% year over year [10] - Overall, Microsoft is experiencing faster revenue growth at 17% year over year compared to Alphabet's 15% [13] Comparative Analysis - Gemini is likely to achieve 100% revenue gains for Alphabet first due to its user base and distribution advantages [11] - Microsoft may have a larger long-term revenue opportunity due to its partnership with OpenAI, despite being a riskier proposition [12]