July 25 (Reuters) - Artificial intelligence is expected to pay off big for tech giants including Microsoft (MSFT.O) and Alphabet (GOOGL.O) someday.
Microsoft is bearing AI costs in two ways, analysts said: to power its own products such as its forthcoming $30-a-month Copilot AI assistant, and to serve companies wanting to use its Azure cloud computing services to create AI products.
"They're buying a bunch of H100s," said Ben Bajarin, chief executive and principal analyst of Creative Strategies, referring to Nvidia's flagship chips for AI.
Microsoft may be "aggressively buying Nvidia chips, given Microsoft does not have its own silicon as an alternative," said Atlantic Equities analyst James Cordwell.
"The message on inflection point was the same," from Microsoft and Google, said Gene Munster, managing partner at Deepwater Asset Management, "but the difference was Microsoft investors wanted to see more."
Persons:
Ben Bajarin, Ruth Porat, Scott Kessler, James Cordwell, Porat, Gene Munster, Stephen Nellis, Akash Sriram, Anna Tong, Max Cherney, Yuvraj Malik, Greg Bensinger, Sayantani Ghosh, Richard Chang
Organizations:
Microsoft, Nvidia Corp, Creative, Google, Deepwater Asset Management, Thomson
Locations:
Atlantic, San Francisco, Bengaluru, New York