Microsoft, Google post double-digit profits rises, boosting case for AI

Tech giants’ shares surge after stronger-than-expected earnings.

Google and Microsoft have reported double-digit profit increases, buttressing the case for the tech giants’ heavy investment in artificial intelligence (AI).

The quarterly results announced on Thursday by Google parent Alphabet and Microsoft came in ahead of expectations, sending their shares 11 percent and 4 percent higher, respectively, in after-market trades.

Alphabet reported a profit of $23.7bn in the first three months of the year, a rise of 57 percent.

The Silicon Valley giant also announced its first-ever dividend, at $0.20 per share.

Google chief Sundar Pichai said AI text-to-image model Gemini had helped drive the company’s solid earnings.