Alphabet’s Q2 report highlighted significant growth driven by artificial intelligence, with Google Cloud revenues increasing 32% year-over-year. The company garnered over 450 million monthly active users for its Gemini AI and hiked capital expenditure guidance by $10 billion to meet demand. Microsoft also reported impressive results, with Azure showing 39% year-over-year growth, primarily fueled by AI, and over 800 million users engaging with AI products monthly.
Meta’s AI strategies resulted in engagement boosts across platforms, with Facebook and Instagram witnessing 5% and 6% increases in user activity, respectively. Moreover, customer and revenue growth at disrupting companies like Intuitive Surgical and Lemonade indicated widespread AI integration across industries. Intuitive Surgical reported a 14% increase in AI-powered robot installations and 21% revenue growth, while Lemonade noted 35% revenue growth.
Amazon surpassed retail expectations with an operating income of $19.2 billion and e-commerce revenues up 11%, driven by an expanding deployment of 1 million robots optimizing operations. This earnings season underscores a transformative shift in the economy, where AI is now crucial across sectors, marking a potential $20 trillion economic wave on the horizon.
