Microsoft's partnership with start-up OpenAI is expected to transform the company into an AI powerhouse. The company's AI efforts, including the integration of AI into Azure, Office, and Windows, are showing promising signs. Microsoft's Office cloud service for business users has over 400 million paid customers. The company's Xbox content and services revenue also saw a significant increase of 61%, following the acquisition of Activision Blizzard Inc.
Key takeaways:
- Microsoft Corporation posted an 18 percent increase in revenue to $62 billion in the second quarter, driven by interest in new artificial intelligence products and renewed spending on cloud computing.
- Azure cloud-services sales gained 30 percent, exceeding the 28 percent growth analysts projected. The company expects growth in the Azure division to remain stable during the current quarter.
- Microsoft's market capitalisation has surpassed $3 trillion, making it the world's most valuable company, due to optimism for its AI prospects and partnership with start-up OpenAI.
- Xbox content and services revenue jumped 61 percent, following the acquisition of Activision Blizzard Inc. in October to bolster the Xbox business.