Microsoft and Google-parent Alphabet have reported strong financial results, driven largely by their investments in artificial intelligence (AI). Microsoft's third-quarter revenue rose to $61.9 billion, surpassing estimates due to significant growth in its cloud services, including a 31% increase in Azure revenue. The company's AI-driven products, such as the Copilot AI assistant, have been well-received, contributing to a 20% increase in profits to $21.9 billion. Similarly, Alphabet's focus on AI has also paid off, with the company seeing a substantial profit of $23.7 billion. Both companies' AI investments have led to stock price increases, with Microsoft's shares up by 4.4% and Alphabet's by 12% in after-hours trading. Additionally, Microsoft's AI services contributed 7 points of growth, and the demand for AI is currently exceeding supply.