Microsoft’s Cloud Services and AI Drive 17% Growth in Revenues

Microsoft reported significant growth in its cloud services division during the last quarter, surpassing overall turnover and contributing to the majority of the tech group’s revenues. The company also experienced increased demand for artificial intelligence applications, leading to higher profits overall.

During the past quarter, Microsoft’s turnover rose by 17 percent year on year, reaching nearly $62 billion. Profits increased 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.

Microsoft’s strategic investments in cloud services and artificial intelligence have proven successful, driving substantial growth and profitability for the company. With the demand for such technologies continuing to rise, Microsoft is well-positioned to capitalize on these opportunities and drive further success in the future.