Tech Giants Microsoft and Google Battle for Dominance in AI Market

Microsoft plans to aggressively spend on building new data centers to meet the growing demand for its artificial intelligence (AI) services. The company's capital expenditures are expected to rise each quarter until fiscal 2024. Microsoft is incorporating AI into its products, such as the "Copilot" assistant for Microsoft 365, and aims to sell cloud computing services for building AI services. While Azure sales growth exceeded expectations, the company's heavy spending on AI services outpaced revenue growth. Microsoft is also competing with other cloud providers for a limited supply of chips from Nvidia. Despite increased spending, Microsoft expects operating profit margins to grow slightly.