Microsoft’s financial performance witnessed a notable upsurge in the closing months of 2023, buoyed by the extensive deployment of its artificial intelligence capabilities.
The tech behemoth reported that its revenue from September through December surged by 18% on an annual basis, exceeding $60 billion.
This report arrives as Microsoft clinches the title of the world’s most valuable public corporation, outpacing Apple with a market capitalization eclipsing $3 trillion.
Satya Nadella, the Chief Executive Officer at Microsoft, highlighted the company’s prodigious application of AI technology at a large scale.
During an eanings call with investors, the tech titan’s success was underscored, showing Microsoft at the forefront of the tech industry, leveraging the burgeoning AI-induced market expansion.
Microsoft boasts significant investment in OpenAI, the entity behind the ChatGPT sensation, whose 2022 debut sparked enthused dialogues regarding the forefront of technological innovation.
This unprecedented growth has been tinged with legal challenges, notably from the lawsuit by the New York Times against OpenAI, alleging copyright infringements in the development of its AI. Both OpenAI and Microsoft face claims for substantial reparations.
The training of LLMs like ChatGPT relies heavily on the analysis of vast data, often accumulated from the web.
Microsoft’s suite of AI-powered functionalities now includes coding assistance and business-focused applications. The launch of Copilot in November expanded its portfolio, offering features that digest Teams meetings and assist in crafting emails, documents, spreadsheets, and presentations.
Nadella affirms that such innovations are yielding dividends and attracting a burgeoning customer base.
Investors keep a close gaze on Microsoft’s Azure cloud services, whose sales have accelerated by 30% year-on-year, surpassing predictions.
Microsoft’s quarterly profits leaped by 33% to $21.9 billion.
Alphabet, Google, and YouTube’s parent company reveal increased attention to AI, reporting a 13% increase in their quarter’s revenue and profits nearing $20.7 billion.
CEO Sundar Pichai credits the AI infusions in their search engine, cloud solutions, and YouTube for their advantages.
Staff downsizing persists at both companies. Google’s workforce has decreased by nearly 5% since the previous year, with fresh layoffs announced this month.
Microsoft disclosed restructuring within its gaming sector, diminishing 1,900 roles, or 9% of that department, after it acquired the gaming powerhouse Activision Blizzard.