Microsoft reports gains from cloud and AI investments
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Microsoft reported US$90 billion (S$116 trillion) in revenue and US$35.8 billion in net income in the last quarter of its fiscal year.
PHOTO: REUTERS
- Microsoft reported US$90 billion (S$116 trillion) in revenue and US$35.8 billion net income, driven by cloud and AI divisions.
- Its AI tool Copilot has over 30 million paid users, showing strong customer confidence in AI transformation.
- Investments in OpenAI and Anthropic contributed billions to profit; major tech firms plan huge AI infrastructure spending.
AI generated
SAN FRANCISCO – Microsoft beat analysts’ expectations in its latest quarterly report, saying on July 29 that the results were partly driven by its cloud and artificial intelligence divisions.
The tech giant reported US$90 billion (S$116 trillion) in revenue and US$35.8 billion in net income in the last quarter of its fiscal year which ended in June, potentially alleviating concerns from investors and analysts about whether its investments in AI are paying off.
Its AI-powered business productivity tool, called Copilot, also has over 30 million paid users, which shows “confidence” from customers as they use Microsoft to “power their AI transformation”, chief executive officer Satya Nadella said in a statement.
Microsoft said it also saw a US$3.2 billion gain from its investment in Anthropic.
Investments in OpenAI boosted Microsoft’s net profit by US$480 million in its fourth quarter and US$4.9 billion for its full fiscal year, Microsoft added.
Major tech companies in the United States have been spending billions to build AI infrastructure and develop increasingly more advanced AI models.
Amazon, Microsoft, Alphabet and Meta are collectively on track to pour roughly US$700 billion into AI data centres, chips and computing infrastructure in 2026 alone.
In June, Google parent company Alphabet announced it would raise up to US$80 billion in stock to fund its AI efforts, with Warren Buffett’s Berkshire Hathaway committing US$10 billion.
Investors and analysts will be looking for clues about Microsoft’s ongoing plans to pour cash into AI projects during a call with analysts later on July 29. AFP
