Why This Analyst Prefers Microsoft Over Google In The AI Race— 'You Don't Have The Downside Risk Of...'

Core Insights - Analysts are concerned about the potential impact of Microsoft's Azure on Google's AI business, particularly with the upcoming releases of ChatGPT 6 and Gemini 3, which may disrupt Google's traditional revenue model [2][5] - There is a growing preference among analysts for Microsoft over Google, citing Azure's leadership in the AI cloud market and its strong influence on the developer community [4][5] Group 1: Google's Business Risks - Google's traditional business model, which relies on providing links rather than direct answers, is at risk due to the rise of AI technologies like ChatGPT, potentially leading to revenue declines [2][5] - Analysts believe that the cannibalization of Google's core offerings by AI could pose inherent risks to its business model [5] Group 2: Microsoft's Growth Potential - Microsoft is seen as well-positioned for significant AI-driven growth, with its cloud business expected to be a key winner in strategic AI deployments by 2026 [6] - The company is making substantial investments in global infrastructure, including a commitment of $19 billion CAD ($13.85 billion) to enhance digital and AI infrastructure in Canada from 2023 to 2027 [7]