Alphabet is still reorganising its personnel in order to give AI investments top priority. This increases operational efficiency on the inside. Externally, it speeds up the creation and commercialization of its AI capabilities, such as the Gemini large language model, which is anticipated to outperform OpenAI's GPT-4, the industry standard.
Despite concerns about share erosion from generative AI, Google has 91.6% of the search market as of December 31, 2023, according to Statcounter. In 2024, Google will further cemented its leadership by integrating AI capabilities. For instance, Google just released Circle to Search, which lets Android users perform multiple searches by circling a purse inside of a picture and posing queries like "Where can I buy this?"
Amazon has been able to deliver more goods at faster delivery speeds and lower costs since making the switch to regional fulfilment. Increased delivery times contribute to Amazon's continued dominance as the leading online retailer. The retail industry's margins will keep getting better, especially as more capacity is effectively utilised for fulfillment-as-a-service through more recent programmes like Amazon Supply Chain and Buy with Prime.
Amazon has a number of expansion plans that, while few competitors can match, come with hefty capital costs but have the potential to yield enormous long-term gains. These include the supermarket and international retail industries, Project Kuiper for satellite broadband, and Amazon Pharmacy for healthcare services.
Built on a strong foundation with OpenAI's market-leading models, Microsoft is well-positioned to spread the adoption of AI across its installed base of productivity and enterprise software as more use cases roll out this year. With a copilot licence costing $30 USD, every 1% increase in adoption from its Office clientele will result in an additional $1.4 billion in revenue.
Thanks to its industry-leading generative AI tech stack, enduring business partnerships, and collaboration with OpenAI, Microsoft Azure is well-positioned to increase its market share in the cloud computing space. Azure now has a chance to increase its market share among developers and startups thanks to this recent technological change.