The tech industry is in the midst of a monumental shift given recent advancements in generative artificial intelligence (AI). And perhaps no two companies could be more impacted than (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).

Microsoft jumped into the race in a big way last year when it took a large stake in OpenAI, the creator of ChatGPT. Microsoft's initial involvement with the company actually goes back to 2019, when it made a $1 billion investment in the AI specialist, but after ChatGP went live and gained a lot of attention, Microsoft significantly increased its investment and went all-in on OpenAI's technology.

Alphabet, meanwhile, has been spending on AI for years, but didn't really jump into using the technology until after Microsoft made its big push. At the moment, Microsoft is emerging as a clear AI leader, while investors are a bit more skeptical about AI's impact on Alphabet. Here's why they shouldn't be.

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Source Fool.com