Tech companies are cashing in on the artificial intelligence (AI) boom, with first-quarter results showing a surge in demand for everything from voice assistants to cloud computing. The AI gold rush is driving up sales and profits for specialized companies such as SoundHound and his Nvidia, as well as prominent companies such as Microsoft and Baidu, demonstrating the technology’s growing influence across industries. It is embossed.
SoundHound records strong quarter amid demand for audio technology
SoundHound said its first quarter results reflect growing interest in voice-based AI, particularly customer service.
“Our first quarter sets the tone for what will be another year of strong growth for SoundHound in 2024,” CEO Keyvan Mohajer said in a May 9 news release. “Voice AI is rapidly becoming an essential tool for customer service, and that is reflected in subscription demand.”
The Santa Clara, Calif., company reported revenue of $11.6 million, an increase of 73% from a year ago. Mohajer said on a call with analysts that SoundHound’s 20 years of experience gives it an edge in the crowded AI race.
“As an AI company, we combine over 20 years of innovation and billions of customer interactions to create the best voice AI technology on the market,” he said. “Global brands are increasingly looking to us to deliver superior experiences in automotive and customer service.”
SoundHound generates revenue through subscriptions and reservations, and its order backlog has grown approximately 80% year-over-year to $682 million. The company announced that its voice AI processed more than 4 billion queries in the same quarter, an increase of 60%.
CFO Nitesh Sharan touted the results as SoundHound’s “strongest first quarter in history,” pointing to momentum from pipeline growth across all business lines.
During the quarter, SoundHound completed its acquisition of SYNQ3, making it the most prominent voice AI provider for restaurants with over 10,000 active locations. Its technology is used by major brands such as Applebee’s, Church’s Chicken, and the Planet Fitness franchise.
SoundHound has partnered with Nvidia in the automotive space to bring generative AI to cars without internet connectivity. The company’s Chat AI product is powered by Stellantis brands such as Opel, Peugeot, and Alfa Romeo.
SoundHound reported a GAAP net loss of $33 million, or 12 cents per share. Cash balance was $226 million.
Riding the AI wave, NVIDIA stock nears record
Nvidia stock soared Wednesday morning (May 15), surging above a key technical level that could signal further upside. The stock cleared the so-called cup-with-handle pattern at $922.20, attracting a buy signal from traders. The move comes as NVIDIA’s stock price has been strong recently, with investors eyeing a potential rally to $974 or higher.
In February, Nvidia reported fourth-quarter revenue of $22.1 billion and better-than-expected revenue of $20 billion. This was an increase of 265% year-over-year and 22% sequentially. Nvidia’s data center revenue increased more than 400% compared to the same period in 2023, reaching $18.4 billion.
Nvidia makes computer chips that power AI systems. Its graphics processing unit accelerates the training of machine learning models.
Microsoft bets big on French AI
Microsoft announced on Monday (May 13) plans to invest $4.3 billion in French technology. The funds will be used for cloud computing, AI training, and startup support, with plans to hire 1 million people and revive 2,500 AI ventures by 2027.
“Today we are proud to announce a historic investment in France, as we enter the second year of generative artificial intelligence and the age of reason,” said Corinne De, vice president of Microsoft France.・Mr. Bilbao said in the news. release. “Through state-of-the-art cloud and AI infrastructure, an extensive training scheme for French nationals, and new support for Hexagon start-ups, we are pursuing our commitment to sustainable and inclusive growth. Masu.”
Baidu’s AI push drives growth in Q1
Baidu announced better-than-expected results in the first quarter. That’s because the Chinese tech giant’s investments in artificial intelligence helped offset sluggish online advertising sales.
The Beijing-based company said revenue for the three months ended March 31 rose 1% to 31.5 billion yuan ($4.37 billion) and net profit fell 6% to 5.4 billion yuan. .
Revenue from Baidu’s core businesses, which includes its flagship search engine and AI initiatives, rose 4% to 23.8 billion yuan. The company’s AI cloud division was a bright spot, with sales increasing 6%.
“As the new era of Gen-AI unfolds in China, foundational models like ERNIE will serve as the underlying infrastructure,” said Robin Li, co-founder and CEO of Baidu. said in a news release. Baidu has extended the ERNIE family of large-scale language models with the aim of making technology more affordable and efficient.
The results highlighted Baidu’s progress in pivoting from online advertising to AI-powered services and products.
DigitalOcean reports strong first quarter, recognizes AI growth opportunity
DigitalOcean Holdings’ first quarter results were described by CEO Paddy Srinivasan as “strong overall” as the cloud computing company saw accelerating revenue growth and strong profit margins.
Revenue increased from the fourth quarter, but adjusted earnings and free cash flow remained strong. DigitalOcean’s core product utilization and net dollar retention rates also improved.
“Our first quarter results are very encouraging,” Srinivasan said on a conference call with investors. The CEO, who took over in January, said he spent much of the quarter engaging with customers, partners and employees.
For small and medium-sized businesses, DigitalOcean invests in artificial intelligence and machine learning products. Srinivasan said advances in AI are expanding the market for cloud platforms.
The company is ramping up its product rollout, announcing features such as automatic data backups, dedicated compute instances, and AI tools. DigitalOcean reported earnings of 15 cents per share, below analysts’ expectations.
As the AI race heats up, investors will be watching to see what tech giants do next. With billions of dollars being poured into this field and new breakthroughs emerging rapidly, companies that can make the most of the power of artificial intelligence are poised to reshape their business landscape. I can see it. The question now is who will emerge victorious in this high-stakes battle for AI supremacy.
