Microsoft reported a 16% increase in quarterly sales, reaching $65.6 billion, showcasing the success of its investments in artificial intelligence. The company has dedicated substantial resources to expand its global network of data centers to support AI technology development, resulting in AI-related products contributing approximately $10 billion to its annual revenue.
CEO Satya Nadella highlighted that this achievement marked the fastest business growth in Microsoft's history. The company's quarterly profit also rose by 11% to $24.7 billion, surpassing Wall Street expectations.
While Microsoft has not disclosed specific revenue figures for AI products, it has integrated AI technology, including its AI assistant Copilot, across all business segments, notably in its Azure cloud computing contracts.
The productivity business segment, encompassing the Office suite, saw a 12% growth to $28.3 billion, while the cloud-focused segment increased by 20% to $24.1 billion. The personal computing division, driven by the Windows sector, grew by 17% to $13.2 billion, with significant contributions from the Xbox video game business.
Microsoft's strategic investments in AI infrastructure and startups, such as partner OpenAI, have amounted to $20 billion in spending for the quarter. The company has also introduced AI-enhanced laptops and emphasized the adoption of AI platforms in workplaces to enhance productivity.
Despite facing cybersecurity challenges, Microsoft's CEO saw a substantial increase in annual compensation, reflecting the company's strong performance under his leadership. The company continues to innovate in AI technology, aiming to stay competitive in the evolving tech landscape.
Microsoft's commitment to AI development and its financial success in this quarter underscore its position as a leader in the tech industry, driving growth through innovation and strategic investments.
