In the past quarter, Microsoft’s cloud services division experienced significant growth, outpacing overall turnover and contributing to 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. Cloud services generated over $35 billion in revenue, up 21 percent compared to the same period last year.
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. Azure revenues climbed by 31 percent in the last quarter, due in part to OpenAI’s contributions.
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.