Microsoft Corp., (Nasdaq : MSFT), is riding the wave generated by AI to accelerate future revenue.
Microsoft reported Tuesday $52.9 billion sales and $18.3billion profit for its third fiscal quarter of 2023. This period runs from Jan. 1 to March 31. Both figures have slowed down from the explosive growth seen during the Covid-19 Pandemic. This is due to the recent economic climate.
The company, which increased its profits by 9% year-over-year last quarter, also jumped into the AI trend, investing in OpenAI, a company that created the viral chatbot ChatGPT. The company also stressed the importance of this technology in the future.
Microsoft CEO Satya Nadella stated in a press release Tuesday that the world's best AI models were coming together with natural language, which is the most universal interface. This will create a whole new computing era. Microsoft Cloud is the best platform to help customers maximize their digital spending and innovate with this new generation of AI.
Microsoft does not report its earnings as clearly as other companies that have cloud divisions, but Chief Financial Officer Amy Hood stated in the release of the company's cloud division Azure that revenue for the quarter was up by 22% at $28.5 billion.
Microsoft's Intelligent Cloud Segment, which includes many server products and Azure services, brought in 22.1 billion dollars, up 16% from last year. This is a 10 percent lower growth than the previous year.
Wall Street analysts had been preparing for a decline in cloud service spending, as tech companies began reporting their earnings.
Microsoft said when it invested in OpenAI that it would use AI technology from the company to improve Bing and its 365 products.