Microsoft reported strong financial results for its most recent quarter, with revenue increasing by 12 percent to $69.6 billion and profit rising by 10 percent to $24.1 billion. The tech giant continued to invest heavily in building data centers for cloud computing and artificial intelligence, spending $22.6 billion on capital expenses in the quarter. Microsoft is expected to spend around $80 billion on data centers this fiscal year in response to increased customer demand for A.I. and cloud services.
The company’s flagship cloud computing service, Azure, saw a 31 percent growth in sales, with a significant portion coming from artificial intelligence. Microsoft’s A.I. sales exceeded an annualized run rate of $13 billion, fueled by partnerships with OpenAI and the development of new systems. Microsoft’s personal computing business remained flat, while sales of online productivity tools for businesses grew by 15 percent.
The company’s stock was down about 1 percent in after-hours trading following concerns about A.I. spending among big tech companies, sparked by the emergence of a Chinese start-up that claimed to have developed an advanced A.I. system at a fraction of the cost. Despite the competition, Microsoft remains focused on expanding its opportunity and winning new customers.
Overall, Microsoft’s strong financial performance and strategic investments in cloud computing and artificial intelligence position the company well for future growth and innovation in the tech industry.
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