Alphabet (Google), Amazon, Mansana, Target (formerly Facebook) and Microsoft earned $139,238 million (€127,257 million) in the first half of 2023, up 17.3% year-on-year, after an increase artificial intelligence (AI) in the market.
According to data compiled by EFE, the five tech giants increased their accounts by 4.9% between January and June 2023 compared to the same period in 2022, bringing in $697,565 million.
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Other factors besides AI that explain the improvement in the bottom line of these companies are growth in demand from the advertising market and cloud services.
In particular, the joint profits of these companies increased due to the recovery of Amazon, which in the first half of 2022 made a loss of almost $6,000 million and returned to a positive balance during this period.
AMAZON IS RECOVERING
Amazon was the company whose earnings rose the most this half-year, after increasing 268.4% to $9.9 billion, reversing the setback suffered last year after the stock market crash of Rivian, the company in which the firm has important participation.
In terms of billing, Amazon grew 11.9% year on year to reach $135,674 million, up $14,445 million.
The company attributes this growth to cost and delivery time reductions, as well as increased demand for advertising services.
Also highlighted is the consolidation of cloud service Amazon Web Services (AWS), whose account increased 12% year-on-year to $22.1 billion thanks to the launch of products that use generative AI.
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MICROSOFT, THE SECOND MOST DEVELOPING
Microsoft positions itself as the second company with profits up the most, up nearly 14.6% to $38.380 million between January and June, followed by Alphabet, which earned 3% more to $33.419 million.
Apple posted a net income down 0.9% in the first six months of 2023 at $38.380 million; and Meta registered a decline of 4.6% to 13,498 million.
Invoicing for all companies except Apple increased in the first half, with Amazon and Microsoft performing the best, gaining 11.9% and 7.7% respectively.
For its part, Meta’s billing was up 6.9% to $60,645M, while Alphabet was up 4.8% to $144,391M.
On the contrary, Apple reduced its turnover by 2% year-on-year due to the decrease in sales of its equipment, to 176.633 million units.
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AI: THE ENGINE OF TECHNOLOGY IN 2023
Microsoft CEO Satya Nadella noted that “Organizations are asking not only how, but how quickly they can apply this next generation of AI to meet the opportunities and solve the challenges they face.”
For his part, Alphabet CEO Sundar Pichai highlighted his company’s commitment to continue to “lead” in AI development, as they announced in April a group called DeepMind dedicated solely to this purpose.
Until last month, the company offered 21 products that use this technology and that it estimates are used by more than 2.5 billion people.
Meta has also hinted that they are developing their own AI products, although there has been no official announcement yet.
At the same time, Amazon indicated that it will continue to develop generative AI products that will cover the healthcare sector and cloud services.