Microsoft’s big bet on AI appears to be paying off

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Microsoft in front of NYC building

Sabrina Ortiz/ZDNet

Since launching Copilot (formerly Bing Chat) in February last year, Microsoft has introduced full-on artificial intelligence (AI). The company has incorporated AI across all parts of the tech stack, including enterprise, security, cloud, hardware and more — and it seems to be paying off.

Microsoft on Tuesday unveiling Its second quarter earnings. Revenue and earnings not only exceeded estimates but also significantly exceeded prior year numbers, a star of AI growth.

Also: Microsoft Copilot Vs. Copilot Pro: Is the subscription fee worth it?

Microsoft CEO Satya Nadella said, “We’ve moved from talking about AI to implementing AI. “By infusing AI across every layer of our technology stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

Microsoft reported revenue of $62 billion, an 18% increase over the previous fiscal year, and net income of $21.9 billion, reflecting a 33% increase.

Microsoft’s cloud revenue grew significantly, up 24% year over year to $33.7 billion. Azure and other cloud services grew by 30%, and according to Nadella, that has a lot to do with AI.

“Azure again shared our AI advantage this quarter,” Nadella said on an earnings call, according to a Report.

Additionally, Office Commercial products also grew 15% in revenue, driven by 17% in Office 365 Commercial revenue growth, according to the earnings report.

These findings follow the company’s development of Microsoft Copilot for Microsoft 365, an AI assistant for Microsoft 365 applications, generally available to enterprise customers in November. 1, 2023.

Also: ChatGPT Plus users can now add relevant GPTs to their chats – here’s how

While more time is needed to attribute revenue growth alone, it could be a factor, especially since the enterprise solution comes at a steep price of $30 per user per month.

Microsoft shows no signs of slowing down on the AI ​​front, this month unveiling its latest development, Copilot Pro, a supercharged subscription version of Copilot for $20 per month for users. Been there too Report Microsoft and OpenAI are looking to invest in a humanoid robot startup.

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