Microsoft's slow cloud growth signals AI payoff likely to take longer

Microsoft's slow cloud growth signals AI payoff likely to take longer


While overall Azure growth slowed, AI services accounted for a larger portion of the increase in revenue in the June quarter at 8 percentage points, compared with 7 percentage points in the previous quarter | (Photo: Reuters)


Microsoft said it would spend more money this fiscal year to build out AI infrastructure even as growth slowed in its cloud business, another sign the payoff from hefty investments in the technology may take longer than Wall Street had hoped.

 


Shares fell 7 per cent on the spending forecast but pared losses to trade down 4 per cent after the bell on Tuesday after Microsoft said on a post-earnings call that Azure cloud growth would accelerate in the second half of fiscal 2025.

 

Big technology companies have been pouring billions of dollars into data centers to capitalise on the generative AI boom.

Google-parent Alphabet warned last week that its capital spending would stay elevated for the rest of the year.

 


Microsoft said its capital spending rose 77.6 per cent to $19 billion in its fiscal fourth quarter that ends June 30, with cloud and AI-related spending accounting for nearly all of the expenditures. For all of fiscal 2024, capital spending totaled $55.7 billion.

 


Group CFO Amy Hood said the spending was necessary to support demand for AI services and the company was investing in assets that “will be monetized over 15 years and beyond.” Still, investors who have run up Microsoft stock by nearly a quarter in the past 12 months on AI optimism were disappointed with the Azure growth.

 


Microsoft predicted that the business would grow 28 per cent to 29 per cent on a constant currency basis in the July-September quarter, compared with estimates of 29.7 per cent, according to Visible Alpha.

 


That followed a 29 per cent rise in the quarter ended June 30, which was below estimates of 30.6 per cent and marked a slowdown from the previous three months.

 


“The street doesn’t have a lot of patience. They see you spending billions of dollars and they want to see a pickup in revenue of that amount,” said Daniel Morgan, senior portfolio manager at Synovus Trust, which holds shares in Microsoft.

 


“If these companies do not hit it out of the ballpark and are far better than the estimates then they are going to be knocked back,” he added.

 


While overall Azure growth slowed, AI services accounted for a larger portion of the increase in revenue in the June quarter at 8 percentage points, compared with 7 percentage points in the previous quarter.

 


The company does not break out the absolute revenue figure for Azure, the part of its business best situated to capitalize on booming interest in AI.

 


CEO Satya Nadella said that Azure AI was now used by more than 60,000 customers, up nearly 60 per cent year-on-year and that the average spend per customer continues to grow.

 


Nadella has pushed the company to go all-in on the technology, weaving AI into almost every product from search engine Bing to productivity software such as Word.

 


Large parts of those efforts have been fueled by technology from OpenAI, in which Microsoft has invested about $13 billion, including the 365 Copilot assistant for enterprises.

 


The productivity business – home to the Office suite of apps, LinkedIn and 365 Copilot – posted growth of 11 per cent, compared with expectations of 10 per cent.

 


Revenue from its Intelligent Cloud unit – home to the Azure cloud-computing platform – rose 19 per cent to $28.5 billion in the fourth quarter, missing analysts’ estimates of $28.68 billion, LSEG data showed.

 


Microsoft – seen as a bellwether for the tech industry thanks to its wide-spanning business – said total revenue rose 15 per cent to $64.7 billion in the fourth quarter. Analysts had expected $64.39 billion, according to LSEG data.

 


Revenue from its personal computing business, which includes Windows and devices such as the Xbox and Surface computers, grew 14 per cent as Microsoft benefited from stabilizing personal computer sales. The PC market grew for the second straight quarter in the April-June period, according to research firm IDC.

 


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 31 2024 | 10:13 AM IST



Source link

Google autocomplete results of Trump assassination bid stems questions

Google autocomplete results of Trump assassination bid stems questions


CLAIM: Google is engaging in election interference by censoring autocomplete results about former President Donald Trump (Photo: Reuters)


With fewer than 100 days until the 2024 election, social media users are claiming that a lack of Google autocomplete results about former President Donald Trump and his attempted assassination is evidence of election interference.


Many posts include screenshots showing what the autocomplete feature, which predicts what users are trying to type, has generated for text such as attempted assassination of tr or president donald.


Among the pictured results for the former phrase are references to other assassination attempts, including that of Harry Truman and Gerald Ford, but nothing for Trump. The latter provides two options president donald duck and president donald regan.


Multiple high-profile figures, including Trump and sitting members of Congress, promoted the claim across social media platforms, collectively amassing more than 1 million likes and shares by Tuesday. Trump did not immediately respond to a request for comment.


Google attributed the situation to existing protections against autocomplete predictions associated with political violence, noting that no manual action was taken to suppress information about Trump.


Search engine experts said there are many reasons that could explain why some autocomplete results concerning the former president were not appearing.


Here’s a closer look at the facts.


CLAIM: Google is engaging in election interference by censoring autocomplete results about former President Donald Trump, including the assassination attempt at his Pennsylvania rally on July 13.


THE FACTS: It is true that Google’s autocomplete feature as of Monday was not finishing certain phrases related to Trump and the assassination attempt as shown in screenshots spreading online, but there is no evidence it was related to election interference.


By Tuesday, some of the same terms were providing relevant autocomplete results. The text president donald now also suggests Donald Trump as a search option. Similarly, the phrase attempted assassination of includes Trump’s name in autocomplete predictions. Adding tr to the same phrase though makes the option disappear.


Completed searches about Trump and the assassination attempt done on both Monday and Tuesday yielded extensive relevant results regardless of what autocomplete predictions came up.


Google told the AP that its autocomplete feature has automated protections regarding violent topics, including for searches about theoretical assassination attempts. The company further explained that its systems were out of date even prior to July 13, meaning that the protections already in place couldn’t take into account that an actual assassination attempt had occurred.


Additional autocomplete results now appearing about Trump are the result of systemic improvements rather than targeted manual fixes that will affect many other topics, according to the company.


We’re rolling out improvements to our Autocomplete systems to show more up-to-date predictions, Google told The Associated Press in a statement.


The issues are beginning to resolve, and we’ll continue to make improvements as needed. As always, predictions change over time and there may be some imperfections. Autocomplete helps save people time, but they can always search for whatever they want, and we will continue to connect them with helpful information.


Search engine experts told the AP that they don’t see evidence of suspicious activities on Google’s part and that there are plenty of other reasons to explain why there have been a lack of autocomplete predictions about Trump.


It’s very plausible that there’s nothing nefarious here, that it’s other systems that are set up for neutral or good purposes that are causing these query suggestions to not show up, said Michael Ekstrand, an assistant professor at Drexel University who studies AI-powered information access systems. I don’t have a reason not to believe Google’s claim that this is just normal systems for other purposes, particularly around political violence.


Thorsten Joachims, a professor at Cornell University who researches machine learning for search engines, explained that autocomplete tools typically work by looking at queries people make frequently over a certain period of time, providing the most frequent completions of those queries. Beyond that, a search engine may automatically prune predictions based on concerns such as safety and privacy.


This means that it’s plausible that Google’s autocomplete feature wouldn’t have accounted for recent searches about the assassination attempt on Trump, especially if its systems indeed had not been updated since before the shooting.


“Depending on how big the window is that they’re averaging over, that may simply not be a frequent query, Joachims said. And it may not be a candidate for autocompletion. He added that it’s typical not to update a search model on a daily basis, given the costs and technical risks involved.


A 2020 Google blog post about its autocomplete feature describes how the system reflects previous searches and why users might not see certain predictions, including those that are violent in nature. The post also explains that predictions may vary based on variables such as a user’s location, the language they speak or rising interest in a topic.


Both Ekstrand and Joachims agreed that proving bias in a complex system like Google’s search engine from the outside would be extremely difficult. It would require much more data than just a couple of searches, for example, and would risk setting off the company’s protections against data scraping, reverse engineering and fraud.


In general, claims that platforms are taking particular targeted actions against specific people on political bases are hard to substantiate, Ekstrand said. They sometimes, I’m sure, happen, but there’s so many other explanations that it’s difficult to substantiate such claims.


Joachims noted that the demographics of Google’s user base could impact the results of such a study if they skewed toward one side of the political aisle or another and therefore searched more for their preferred candidates. In other words, the way the system works would make it difficult to probe the system.


Technical issues aside, limiting autocomplete predictions as a method of political influence could simply be bad for business.


Even if Google would like to do that, I think it would be a very bad decision because they could lose a lot of users, said Ricardo Baeza-Yates, a professor at Northeastern University whose research includes web search and information retrieval.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 31 2024 | 8:55 AM IST



Source link

Samsung flags strong AI demand as Q2 profit soars on higher chip prices

Samsung flags strong AI demand as Q2 profit soars on higher chip prices


The chip division reported a 6.45 trillion won profit, its highest since the second quarter of 2022, and its second consecutive quarterly profit | (Photo: Reuters)


Samsung Electronics forecasted robust artificial intelligence-driven demand for chips in the second half of this year, as it reported a more than 15-fold rise in its second-quarter operating profit.

 


“In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments,” Samsung said in a statement.

 


Rebounding semiconductor prices stoked by the AI boom lifted June quarter earnings for the world’s biggest maker of memory chips, smartphones and TVs from a low base a year ago.

 


Samsung’s share price rose 0.9 per cent in morning trade versus a 0.5 per cent rise in the benchmark index.

 


Operating profit rose to 10.4 trillion won ($7.52 billion) in April-June, up from 670 billion won a year earlier, Samsung said.


It was Samsung’s highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant’s cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips.

 


Second-quarter revenue rose 23 per cent to 74 trillion won.

 


Chips boom

 


The chip division reported a 6.45 trillion won profit, its highest since the second quarter of 2022, and its second consecutive quarterly profit.

 


Explosive demand for high-end DRAM chips such as high bandwidth memory (HBM) chips used in AI chipsets, as well as chips used in data centre servers and gadgets that run AI services have helped to lift chip prices.

 


Samsung said its HBM second-quarter revenue rose about 50 per cent from the previous quarter.

 


South Korean rival SK Hynix also said last week demand for AI chips will continue to get stronger, as it posted its highest quarterly profit since 2018.

 


Samsung has yet to meet AI chip leader Nvidia’s standards for fifth-generation HBM chips called HBM3E, though Samsung’s fourth-generation HBM – dubbed HBM3 – has been cleared by Nvidia for use in its less-sophisticated graphics processor called the H20, developed for the Chinese market, sources have told Reuters.

 


Samsung forecasted its HBM3E sales would take up 60 per cent of all HBM sales by the fourth-quarter.

 


With production capacity being concentrated on HBM, server DRAMs and server solid-state drives (SSDs) for AI applications, conventional supply of PC and mobile memory chips will be constrained in the second half of the year, Samsung said.

 


The mobile devices business suffered a drop in second-quarter operating profit of about 810 billion won from a year earlier due to steeper parts costs and higher marketing and development costs for AI services, although shipments were steady at 54 million smartphones.

 


Samsung expects overall demand for smartphones in the second half of 2024 to increase from a year earlier, led by growing demand for premium products with AI functions as well as accessories such as smartwatches.

 


The company launched its latest flagship foldable phones and mobile accessories earlier this month to compete with rival Apple in the premium smartphone segment, including a new ring for health monitoring.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 31 2024 | 8:27 AM IST



Source link

Alphabet's partnership with AI startup Anthropic under UK scrutiny

Alphabet's partnership with AI startup Anthropic under UK scrutiny


On Tuesday, the CMA said it was now seeking views on whether the Alphabet-Anthropic partnership could lessen competition in the UK (Photo: Reuters)


Britain’s antitrust watchdog is scrutinising Google-parent Alphabet’s partnership with artificial intelligence startup Anthropic and its impact on competition, the regulator said on Tuesday.


More than 18 months after Microsoft-backed OpenAI triggered an AI boom with the release of ChatGPT, antitrust regulators around the world have been increasingly concerned by multiple deals struck between smaller industry startups and big tech giants.


Agreements under scrutiny include Microsoft’s partnerships with startups such as OpenAI, Inflection AI, and Mistral AI, as well as Alphabet’s ties to other smaller companies such as Anthropic and Cohere.


Anthropic’s Claude AI models have vied for prominence with OpenAI’s GPT series.


Last week, Britain’s Competition and Markets Authority (CMA) issued a joint statement alongside its counterparts in the United States and the European Union, promising to work together to safeguard fair competition in the AI industry.


Anthropic, which was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, last year said it had secured $500 million in investment from Alphabet, promising another $1.5 billion over time. Anthropic also uses Alphabet’s Google Cloud services as part of its operations.


On Tuesday, the CMA said it was now seeking views on whether the Alphabet-Anthropic partnership could lessen competition in the UK, and has set a deadline of Aug. 13 for its invitation to comment.


A spokesperson for Anthropic said the company would cooperate with the CMA and provide the “complete picture” about its partnership with Google. “We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” they said.


The CMA will decide whether to launch an official investigation at the end of this process.


A Google spokesperson said: “Google is committed to building the most open and innovative AI ecosystem in the world.

Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 31 2024 | 12:11 AM IST



Source link

Microsoft's slow cloud growth signals AI payoff likely to take longer

Microsoft pushes US Congress to pass law for crackdown on deepfakes


Manipulated audio and video technology has already created some controversy in this year’s campaign for US president. (Photo: Reuters)


Microsoft Corp. is calling on Congress to pass a comprehensive law to crack down on images and audio created with artificial intelligence — known as deepfakes — that aim to interfere in elections or maliciously target individuals.


Noting that the tech sector and nonprofit groups have taken steps to address the problem, Microsoft President Brad Smith on Tuesday said, “It has become apparent that our laws will also need to evolve to combat deepfake fraud.” He urged lawmakers to pass a “deepfake fraud statute to prevent cybercriminals from using this technology to steal from everyday Americans.”


The company also is pushing for Congress to label AI-generated content as synthetic and for federal and state laws that penalize the creation and distribution of sexually exploitive deepfakes. 


The goal, Smith said, is to safeguard elections, thwart scams and protect women and children from online abuses. Congress is currently mulling several proposed bills that would regulate the distribution of deepfakes.


“Civil society plays an important role in ensuring that both government regulation and voluntary industry action uphold fundamental human rights, including freedom of expression and privacy,” Smith said in a statement. “By fostering transparency and accountability, we can build public trust and confidence in AI technologies.” 


Manipulated audio and video technology has already created some controversy in this year’s campaign for US president.

In one recent instance, Elon Musk, owner of the social media platform X, shared a altered campaign video that appeared to show Democratic presidential candidate, Vice President Kamala Harris, criticizing President Joe Biden and her own abilities. Musk didn’t clarify that the video had been digitally manipulated and suggested later that it was intended as satire. 


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 31 2024 | 12:07 AM IST



Source link

Tech wrap Jul 30: iOS 18.1 dev beta, WhatsApp, Realme 13 Pro series, more

Tech wrap Jul 30: iOS 18.1 dev beta, WhatsApp, Realme 13 Pro series, more



Apple has released iOS 18.1 developer beta, packed with an initial set of Apple Intelligence features. Introduced in June at its Worldwide Developers Conference (WWDC), the full suite of Apple Intelligence will be available in beta later this year for iPhone, iPad, and Macs.


Qualcomm on July 30 announced the Snapdragon 4s Gen 2 system-on-chip with which it aims to bring 5G to 2.8 billion smartphone users across the globe. Designed to enable gigabit 5G on smartphones under $99, the Qualcomm Snapdragon 4s Gen 2 will initially be offered by Xiaomi in a smartphone expected to be announced before the end of this year.


Realme on July 30 launched the Realme 13 Pro series 5G smartphones in India. Alongside, the Chinese smartphone brand launched the Realme Watch S2 smartwatch and Realme Buds T310 wireless earbuds. The smartphones debuted with its first set of artificial intelligence features, which are focused on enhancing the imaging experience.


WhatsApp on July 30 announced a chatbot-based service to enable Delhi Metro pass recharge facility on the platform. Powered by PeLocal, DMRC’s WhatsApp-based ticketing service is available across all lines operating in Delhi and National Capital Region (NCR) regions, including Gurugram Rapid Metro.


Honor Magic 6 Pro smartphone is set to launch in India on August 2, announced the Chinese smartphone brand on July 30. Released in its home country in January, the Honor Magic 6 Pro is a premium flagship powered by Qualcomm Snapdragon 8 Gen 3 system-on-chip. The smartphone’s global version was unveiled at the Mobile World Congress in Barcelona, US in February.


Reliance Jio has launched the JioBharat J1 4G, its new feature phone packed with Jio apps such as JioTV, JioCinema, JioSaavn, JioPay (UPI), JioChat, and JioPhotos. The budget 4G feature phone has a physical keypad with support for 23 languages, including Hindi, Marathi, Gujarati, and Bangla.


Nvidia Corp., the world’s most valuable chipmaker, announced a raft of updates to its software offerings that aim to make it easier for a wider variety of businesses to use generative artificial intelligence.


Apple relied on chips designed by Google rather than industry leader Nvidia to build two key components of its artificial intelligence software infrastructure for its forthcoming suite of AI tools and features, an Apple research paper published on Monday showed.


Samsung Electronics Co., after a series of setbacks in developing the type of memory chips crucial for the artificial intelligence market, is beginning to make progress in narrowing the gap with rival SK Hynix Inc.  


Meta Platforms on Monday said it will roll out a new tool called AI Studio that will allow users to create, share and design personalized AI chatbots.

First Published: Jul 30 2024 | 8:03 PM IST



Source link

YouTube
Instagram
WhatsApp