AI and cloud technologies have quickly become hugely important for the biggest tech companies in the world, with companies like Microsoft, Google, Amazon and others investing massively into the development of AI and cloud services.
With a report projecting that generative AI (Gen AI) will add nearly US$10tn to global GDP over the next 10 years, the largest companies in the world have announced AI initiatives, embedding this technology into their core offerings like productivity software, search engines, cloud platforms and more.
Meanwhile, the cloud computing model of providing services over the internet has reshaped the technology landscape. With companies shifting from selling software packages to offering cloud-based subscriptions, having robust, AI-powered cloud platforms is critical for these tech giants to capitalise on this transformation.
Microsoft: Azure revenue growth and focus on AI
Microsoft has revealed stellar financial results for the third quarter of fiscal 2024, exhibiting how the tech giant’s focus on cloud computing and AI is paying off.
Microsoft’s investment in AI has helped it overtake Apple as the world’s largest company by market cap. In a hotly-anticipated announcement, the company reported a 17% year-over-year increase in revenue to US$61.9bn for the third quarter of fiscal year 2024, with its operating income soaring 23% and net income jumping 20% to US$21.9bn.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” says Satya Nadella, Microsoft’s Chairman and CEO, underscoring the company’s heavy investments in AI and cloud services.
Amy Hood, Microsoft’s Chief Financial Officer, highlighted the company’s cloud momentum, stating, “This quarter Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, driven by strong execution by our sales teams and partners.”
The Intelligent Cloud segment, which houses Azure cloud services, spearheaded Microsoft’s growth, with a 21% revenue increase to $26.7 billion. Azure and other cloud offerings saw 31% revenue growth.
