Microsoft's AI revenue exceeds expectations vs. Google's cash-burning bottomless pit: What's the watershed moment for AI?
Microsoft Azure Cloud is growing steadily and has a huge positive free cash flow. In contrast, Google Cloud's revenue has soared, but it has been hampered by a slowdown in search ad monetization and huge capital expenditures, resulting in negative free cash flow for two consecutive quarters. The stark contrast between earnings reports reflects a quiet shift in the market's evaluation standards for AI giants—do you value conservative companies that prioritize cash flow, or those that are betting on high growth in the future?