Microsoft experienced a notable surge in sales during the final months of 2023, propelled by the increasing demand for its artificial intelligence (AI) tools.
The company reported an 18% year-on-year revenue growth from September to December, reaching over $60 billion.
This update coincided with Microsoft’s ascension to become the world’s most valuable publicly traded company, surpassing Apple with a market value exceeding $3 trillion.
CEO Satya Nadella emphasized Microsoft’s extensive utilization of AI “at scale,” solidifying its position as a leading player in the tech industry’s pursuit of opportunities presented by AI advancements.
Microsoft’s significant investment in OpenAI, the developer behind the ChatGPT bot, has been instrumental in fostering optimism regarding the potential of new technologies.
However, Microsoft’s expansion has not been devoid of controversy. The company, along with OpenAI, faces a lawsuit from the New York Times over alleged copyright infringement in training the ChatGPT system.
The lawsuit seeks damages amounting to “billions of dollars.”
Microsoft’s recent initiatives in incorporating AI into its offerings, such as Copilot for coding assistance and meeting summarization in Teams, have been well-received.
Nadella highlighted the positive impact of these endeavors, noting the acquisition of new customers.
Additionally, Microsoft’s Azure cloud computing segment witnessed a 30% year-on-year sales increase, surpassing analysts’ expectations.
Overall, the company recorded a 33% year-on-year rise in profits, totaling $21.9 billion for the quarter.
Meanwhile, Alphabet, Google’s parent company, also reported strong financial performance, with a 13% year-on-year revenue growth and nearly $20.7 billion in profits.
CEO Sundar Pichai attributed this success to investments in AI across search, cloud computing, and YouTube.
Despite these achievements, both Microsoft and Alphabet have continued to streamline their workforces. Google has reduced its headcount by approximately 5% since the previous year, with additional job cuts announced recently.
Microsoft similarly announced plans to downsize its gaming division by cutting 1,900 jobs, representing 9% of the division’s staff, following the completion of its acquisition of Activision Blizzard.
Source-BBC
