Microsoft earnings soar, thanks to AI

Microsoft reported a 17% year-over-year increase in revenue to $61.9 billion and a 20% growth in net income to $21.9 billion in the first quarter. The impressive feat is made possible by escalating demand for its AI initiatives.

The company was an early adopter of artificial intelligence, investing heavily in ChatGPT parent OpenAI. It uses the AI firm’s technology in several products, including the Copilot AI bot for Microsoft 365.

Notably, Microsoft’s Azure cloud computing platform witnessed an outstanding 31% increase in demand, with 7% attributed to AI-related services.

Analysts say the collaboration between the tech giant and OpenAI has cemented its position as a leader in AI tech, propelling its market value above $3 trillion this year.