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Fortune

David Meyer

Microsoft's ignition of the AI race is paying off well

Microsoft Satya Nadella Google Alphabet Anthropic Azure

Satya Nadella at the Axel Springer award at Axel Springer Neubau on October 17, 2023 in Berlin, Germany. (Credit: Ben Kriemann—Getty Images)

Yesterday’s Microsoft and Alphabet results certainly delivered on the narrative front—Microsoft’s AI play is paying off big time, and Google is seemingly struggling to compete.

Microsoft saw a revenue boost of 13% thanks to 29% growth in its Azure cloud operation, which was in turn driven by enthusiastic take-up of the AI features that Microsoft—via its sponsorship of OpenAI—is integrating into its services. Its share price rose as much as 6% in after-hours trading.

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