In the past quarter, Microsoft experienced significant growth in its cloud services division, which outpaced overall turnover and contributed the majority of the tech group’s revenue. The demand for cloud services and applications in artificial intelligence (AI) has been a key driver of this growth.
Microsoft reported a 17 percent year-on-year increase in quarterly revenue, reaching almost $62 billion dollars, with profits also rising by 20 percent to nearly $22 billion. The availability of cloud services that enable businesses to develop AI applications using OpenAI technology has been particularly influential in driving demand for Microsoft’s Azure offering, with Azure revenues climbing by 31 percent in the last quarter.
OpenAI, known for developing the popular chatbot ChatGPT, has been a longstanding investment for Microsoft, totaling approximately $13 billion. The tech giant owns a 49 percent stake in OpenAI, which has contributed to Microsoft’s advancements in AI technology and innovation.
Overall, Microsoft’s strong performance in cloud services and AI applications has positioned the company as a leader in the tech industry, with significant revenue growth and profit margins to show for it.
