AI is finally resulting in real growth for big tech companies like Alphabet and Microsoft, according to their third-quarter results. Both companies exceeded street expectations in terms of revenue and net profit, with AI playing a significant role in their success. Alphabet’s revenue reached $76.69 billion, while Microsoft’s revenue landed at $56.52 billion. The demand for AI-powered technology is evident, as these companies are seeing AI growing in areas that indicate strong market demand for generative AI software. Despite the positive results, investors had mixed reactions, with Alphabet’s shares declining over 8.5% and Microsoft’s stock rising nearly 4%. The impact of AI on their results is important to examine for startup founders. Alphabet’s cloud revenue slightly missed expectations, causing investors to react negatively. On the other hand, Microsoft’s “Intelligent Cloud” business group saw a 21% year-on-year revenue increase, with Azure performing better than analysts predicted. Overall, the market’s reaction to these companies’ data reflects their grading, but the focus should be on the AI-related components that contributed to their top-line numbers. By analyzing the conference calls of both companies, valuable insights can be gained for startup founders.