Morning Brew Daily Microsoft and Alphabet Ready to Spend Big on AI & Parents Dropping $4k on Sorority Consultants?
Jul 26, 2023
Big tech is gearing up to invest heavily in AI, with Microsoft and Alphabet reporting impressive earnings. Meanwhile, a significant agreement between UPS workers and management prevents a strike. The podcast dives into Twitter's costly rebranding to 'X', which resulted in a massive loss in brand value. Environmental concerns are raised over a decaying tanker threatening an oil spill. Lastly, the psychology behind spending reveals why Americans are unbothered by high expenditures, including parents shelling out thousands for sorority consultants.
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Big Tech's AI Strategy
- Microsoft and Alphabet are using profits from core products to fund AI investments.
- This allows them to heavily invest in AI infrastructure and research.
Google's Resilience
- Google's search revenue remains strong, showing that AI-powered Bing isn't a major threat yet.
- YouTube's return to growth is a positive sign for Google and the broader ad market.
Alphabet's Hiring
- Alphabet's headcount grew 5% last quarter, despite headlines about tech layoffs.
- This is because they are hiring in AI while cutting underperforming divisions.