By Keithen Drury
Publication Date: 2026-02-09 08:45:00
Both companies are delivering impressive results.
In a battle of artificial intelligence (AI) hyperscalers, Alphabet (GOOG 2.48%) (GOOGL 2.46%) and Microsoft (MSFT +1.90%) are often brought up as two of the best options. Each is taking a different approach to AI, and both approaches have their merits. Which one of these two is a better buy?
Each company looks attractive, but I think there is one that edges out the other.
Image source: Getty Images.
Microsoft is being more passive in the AI revolution
If you haven’t noticed, Microsoft doesn’t have its own generative AI model. Instead, it chose to heavily invest in OpenAI, the makers of ChatGPT. It holds a 27% ownership stake in that business, but that’s not enough for Microsoft to be 100% devoted to it.
While Microsoft has integrated ChatGPT into its in-house AI products, it offers a wider variety of generative AI models in its Azure Foundry, which is its cloud computing platform to train and run AI applications. Users have access…
