Microsoft: AI Deployment is Expanding Significantly

Microsoft’s sales experienced a boost in the final months of 2023, driven by the high demand for its artificial intelligence (AI) tools. The company reported an 18% year-on-year increase in revenue from September to December, surpassing $60 billion. This announcement coincided with Microsoft surpassing Apple as the world’s most valuable listed company, with a market value exceeding $3 trillion. CEO Satya Nadella emphasized Microsoft’s application of AI “at scale.” The quarterly update solidifies Microsoft’s position as a leading tech company capitalizing on the anticipated growth brought about by AI advancements. Microsoft’s involvement with OpenAI, the creator of ChatGPT bot, has contributed to its success. However, the company faces controversy as it is being sued by the New York Times for copyright infringement related to training the system. Microsoft has integrated AI-assisted tools into its software and offerings for businesses, including Copilot, which can summarize meetings and assist with various tasks like drafting emails and creating presentations. Azure, Microsoft’s cloud computing offerings, saw a 30% year-on-year increase in sales, surpassing analyst predictions. Overall, profits in the quarter rose by 33% to $21.9 billion. Alphabet, the parent company of Google and YouTube, also highlighted its investments in AI during its investor update. Despite their successes, both Microsoft and Google have reduced their workforce, with Google’s headcount down by approximately 5% since last year and Microsoft cutting jobs in its gaming unit following its acquisition of Activision Blizzard.