This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Pixabay/CC0 Public Domain Alphabet Inc.'s Google wants to retain the right to bundle its popular mapping and video apps with its Gemini AI service, a lawyer for the company told a federal judge Wednesday, pushing back on a Justice Department proposal that would bar the practice. "There's no notion that Google has to da ...

Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) reported stronger engagement across its AI ecosystem in September, driven by a surge in Gemini’s user growth following the rollout of its viral image-generation tools.Meanwhile, Google Search traffic remained stable, underscoring the platform’s resilience amid rising competitive pressure from OpenAI’s ChatGPT.Bank of America analyst Justin Post maintained a Buy rating on Alphabet with a price forecast of $252, based on a 22x multiple of 2026 estimated core Google G ...

Key Points Shares of the tech behemoth are trading near their all-time high price. Other tech players' shares are also soaring because of enthusiasm about AI. But Microsoft's diversification on the whole keeps its business a bit more stable. 10 stocks we like better than Microsoft › The stock market has been on a bull run for close to two years, which is good news for investors. The "we should keep an eye on that" news is that it's now historically pricey, which leaves it more susceptible to a pu ...

Group 1 - Judson Althoff has been promoted to CEO of Microsoft's commercial business, overseeing marketing and operations [1][2][3] - Microsoft's revenue primarily comes from commercial offerings, including productivity software subscriptions and cloud-based AI solutions [2][3] - CEO Satya Nadella emphasized the importance of integrating sales, marketing, operations, and engineering to enhance growth and AI transformation [3] Group 2 - Althoff joined Microsoft in 2013 from Oracle and was previously the executive vice president and chief commercial officer, earning over $23 million in total pay for the 2024 fiscal year [3] - Under Nadella's leadership since 2014, Microsoft has increasingly assigned CEO titles to select executives, including those for LinkedIn and Microsoft AI [4]

Core Growth Engines - Microsoft has transformed from a slow-growth company to a significant growth stock under CEO Satya Nadella, with an investment of $10,000 in 2014 now worth $140,000 [1][2] - The company's strategic shift to a "mobile first, cloud first" approach has been pivotal in its growth, moving from traditional software to cloud-based services and AI integration [5][6] Financial Performance - From fiscal 2015 to fiscal 2025, Microsoft achieved a compound annual growth rate (CAGR) of 12% in revenue, with gross margin increasing from 64.7% to 68.8% and earnings per share (EPS) growing at a CAGR of 5% [7] - Analysts project revenue and EPS to grow at CAGRs of 15% and 16%, respectively, from fiscal 2025 to fiscal 2028, driven by the expansion of cloud and AI markets [9] Market Position - Microsoft Azure is now the second-largest cloud infrastructure platform globally, and its Office suite, rebranded as Microsoft 365, holds a near-duopoly in the productivity software market [8] - The company has significant cash reserves of $94.6 billion, providing flexibility for acquisitions or share buybacks [10] Competitive Landscape - Microsoft faces strong competition from Amazon and Google in the cloud and AI sectors but is well-positioned to attract large enterprises competing in e-commerce, streaming, and digital advertising [10] - The Xbox gaming division, bolstered by acquisitions like Activision Blizzard, is expected to generate recurring revenues through services like Game Pass and Cloud Gaming [10] Investment Outlook - Despite a high valuation at 33 times this year's earnings, the growth potential in cloud and AI may justify the price, with a projected stock price increase of about 26% to $645 by fiscal 2028 [11] - The stock is considered a solid long-term investment, likely outperforming the S&P 500's average annual return of 10% [12]

Core Insights - The article discusses the journey of Microsoft and its CEO Satya Nadella, highlighting the contrast between the failure of Bing and the success of Microsoft Azure, emphasizing that failures can lead to significant future successes [2][4][13] Group 1: Microsoft and Bing - Microsoft launched Bing in 2009 as a competitor to Google, but it has only captured 4% of the search engine market compared to Google's 90% [1][2] - Despite Bing's failure, Satya Nadella has risen to become Microsoft's Chairman and CEO, leading a company valued at US$3.7 trillion [2] - Nadella acknowledges that Google generates more revenue from Microsoft Windows than Microsoft does, showcasing the competitive challenges faced by the company [3] Group 2: Cloud Computing Success - Microsoft Azure generated US$75 billion in revenue over the past year, outperforming Google Cloud's US$49 billion, marking a significant victory for Microsoft in the cloud computing sector [4] - Nadella was instrumental in pushing Microsoft into cloud computing long before becoming CEO, demonstrating a successful pivot from Bing's failure to Azure's success [4] Group 3: Lessons from Failure - The article illustrates that many successful tech executives have experienced significant failures, which can serve as valuable learning experiences [5][6] - Amazon's Ian Freed, who oversaw the Fire Phone failure, later contributed to the success of Alexa, demonstrating how failures can lead to future innovations [6][8] - The concept of "failure labs" is introduced, where companies can experiment without the constraints of their core business, allowing for innovation and breakthroughs [17][21] Group 4: The Innovator's Dilemma - The article discusses the "Innovator's Dilemma," where established companies struggle to innovate due to their focus on protecting existing profitable operations [14] - Successful companies like Amazon and Google have managed to break free from this dilemma by creating autonomous research labs that foster innovation [15][17] Group 5: Investment Insights - For investors, the article suggests that high-profile failures may indicate potential opportunities rather than disasters, and emphasizes the importance of patience in the face of short-term losses [18][21] - Companies that openly acknowledge their failures and have dedicated resources for experimentation are more likely to succeed in the long run [21]

Core Insights - Microsoft is diversifying its AI partnerships by incorporating technology from Anthropic, a competitor to OpenAI, into its Microsoft 365 Copilot assistant for commercial clients [1][2][5] - Microsoft has invested over $13 billion in OpenAI and continues to maintain a close relationship, but the dynamics are shifting as it explores other AI models [2][3][4] - Anthropic has gained significant investment and valuation, with recent partnerships including a $300 billion plan with Oracle and a $10 billion agreement with Broadcom [3][4] Group 1: Microsoft and OpenAI Relationship - Microsoft has primarily relied on OpenAI models for AI features across its products, but is now beginning to use Anthropic's AI model [1][2] - Microsoft remains the exclusive cloud provider for OpenAI's programming interface, indicating a continued partnership despite the diversification [4] Group 2: Anthropic's Role and Offerings - Anthropic's AI model, Claude Opus 4.1, is being integrated into Microsoft's Researcher tool, allowing users to choose between Anthropic and OpenAI models [5][6] - Anthropic's models are subject to their own terms and conditions and run on Amazon and Google clouds, highlighting the competitive landscape [7] Group 3: Market Dynamics and Adoption - Microsoft identified OpenAI and Anthropic as competitors in the AI space, with Copilot being a crucial part of its AI strategy [8] - Analysts noted that about 60% of customers are implementing Copilot for only 10% of their Microsoft 365 user base, indicating a gradual adoption [9]

Core Points - The European Union is demanding Big Tech companies, including Apple, Google, Microsoft, and Booking, to explain their actions against online financial scams under the Digital Services Act (DSA) [3][4][5] - The DSA aims to ensure that Big Tech firms take more responsibility in combating illegal content online, with potential investigations and fines for non-compliance [4][5][8] - The EU has already initiated multiple investigations into platforms like Meta's Facebook and Instagram, as well as TikTok and X, under the DSA [8][10] Company Responses - Apple, Google, Microsoft, and Booking have been requested to provide information on how they prevent their services from being exploited by scammers [4][6] - Google reported blocking hundreds of millions of scam-related search results daily, while Booking noted a significant reduction in phishing-related fake reservations from 1.5 million to 250,000 between 2023 and 2024 [6][7] - Microsoft expressed its commitment to creating safe online experiences and plans to engage with the European Commission [6] Regulatory Context - The DSA is part of a broader regulatory framework, including the Digital Markets Act, aimed at ensuring fair competition and protecting users online [8] - The EU has faced criticism from US officials, including former President Trump, who labeled the regulations as censorship, while the EU maintains that illegal activities online should be treated similarly to those in the real world [9] - Ongoing investigations into various platforms, including Musk's X, are expected to conclude in the near future, with potential fines anticipated [10]

Google has been slow to adopt StopNCII's system, as its partnership with the nonprofit comes a year after Microsoft integrated the tool into Bing. https://t.co/Q8ZaRbQF4l ...

Core Insights - The article compares Apple and Microsoft as they navigate the challenges and opportunities in the AI sector, questioning which company is better positioned for future AI-driven returns [3]. Group 1: Apple - Apple's business is maturing, with iPhone sales, which account for over 50% of revenue, plateauing [5]. - Despite adopting AI across its ecosystem, including enhancements to Siri and AI-powered features, the company has not seen an acceleration in the upgrade cycle, resulting in slower growth [6][8]. - In the trailing 12 months ending June 28, Apple reported net sales of $409 billion, a 6% year-over-year increase, but net income decreased to $99 billion from $102 billion the previous year [7]. Group 2: Microsoft - Microsoft, being more software-oriented, is heavily reliant on AI for its success, with Azure being critical for running AI models [9]. - The company has integrated AI into its legacy products and has shifted its strategy to develop AI capabilities internally after limitations in its partnership with OpenAI [10]. - In fiscal 2025, Microsoft reported $282 billion in revenue, a 15% annual increase, with net income climbing to $102 billion, a 16% increase [11]. Group 3: Investment Comparison - Both Apple and Microsoft have not impressed the market with their AI offerings, and both have similar P/E ratios around 36 [12]. - However, Microsoft is experiencing faster revenue and profit growth, which may provide a competitive edge in terms of market returns [13].