In the last quarter, Microsoft’s cloud services division experienced significant growth that outpaced overall turnover and contributed 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, with profits also rising by 20 percent to nearly $22 billion.
One of the major contributors to this growth was Microsoft’s Azure offering, which has seen a 31 percent increase in revenues in the last quarter. The availability of cloud services that enable businesses to develop AI applications using OpenAI technology has been particularly influential in driving demand for Azure. 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.