In the past quarter, Microsoft’s cloud services division experienced significant growth, surpassing overall turnover and contributing the majority of the tech group’s revenues. The company also saw increased demand in artificial intelligence applications, leading to higher profits overall.
Microsoft’s turnover rose by 17 percent year on year, reaching nearly $62 billion. The company reported profits increasing by 20 percent to almost $22 billion. Cloud services played a significant role in this growth, generating over $35 billion in revenue, a 21 percent increase from the previous year.
Azure, Microsoft’s cloud service that allows businesses to develop AI applications using OpenAI technology, experienced a notable boost. Revenue from Azure increased by 31 percent in the last quarter. Microsoft has a 49 percent ownership stake in OpenAI, a company known for its popular chatbot ChatGPT, and has invested approximately $13 billion in the AI firm.
The success of Microsoft’s strategic investments in cloud services and artificial intelligence can be attributed to their ability to capitalize on growing demand for these technologies. With continued growth and profitability expected in these areas, Microsoft is well-positioned to drive further success in the future.
