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  • Writer's pictureRealFacts Editorial Team

The Beneficiaries of Microsoft and Google’s AI War

Microsoft and Google logo

Since the AI craze began, all the big tech players have been battling to come out on top. The frantic race to unveil new technologies and capabilities has been fun to watch from the investor standpoint, especially between two of the market’s biggest giants, Microsoft and Google. Ben Reitzes of Melius Research wrote, “The big clouds are in a race to host AI workloads and more importantly — infuse AI into everything they do in order to make more money. If one pulls ahead, the other could lose,” Both companies have recently held their annual developer conferences where they announced their new developments with their AI programs, Copilot (Microsoft) and Gemini (Google), at these conferences both announced that in the coming months they will be investing tens of millions of dollars to support and develop their AI infrastructure. In his article, Microsoft and Google Are in an AI War. These Stocks Benefit From The Arms Race, Barron’s journalist Adam Clark writes about the indirect beneficiaries of this battle.


The main beneficiary that everybody already knows is Nvidia, the chip maker is at the forefront of everything AI and has been the biggest recipient of AI related cash flows. However, people also look to alternative companies, such as Advanced Micro Devices and Broadcom, for their AI infrastructure needs. Adam Clark writes the following, “AMD got a particular boost from Microsoft, which confirmed in its Build conference that it would offer AMD’s MI300x chips as an alternative to Nvidia hardware. Meanwhile, Google unveiled the sixth generation of its tensor processing units, the company’s custom AI chips, which Broadcom helped design.”


Although the AI race is great for chip makers across the board, they aren’t the only companies that will be benefiting. Mass AI infrastructure is going to require two things: electricity and data processing centers. William Yang of J.P. Morgan wrote, “The rising penetration of AI servers…has been accelerating datacenter power consumption. This should benefit not only power supply vendors but also thermal solution providers,” Related utility companies and companies that build and support data processing centers should also see serious growth from the AI wave.


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