Microsoft’s AI business on track to reach $10 billion revenue milestone in second quarter: Satya Nadella says this is ‘the fastest business in our history’ – Microsoft (NASDAQ:MSFT)

Microsoft Corporation MSFT announced in its first-quarter earnings call that its artificial intelligence business is on track to exceed a $10 billion annual revenue run rate in the next quarter, making it the fastest-growing business segment in the company’s history.

what happened: CEO Satya Nadella He highlighted the rapid adoption of AI across the company’s product portfolio, highlighting strong customer demand and widespread enterprise adoption.

“AI-driven transformation is transforming jobs, deliverables and workflows across every role, function and business process, helping our customers drive new growth and operating leverage,” Nadella said on the earnings call. Ta.

“Our AI business is on track to exceed a $10 billion annual revenue run rate next quarter, making us the fastest business in our history to reach this milestone,” Nadella said. I did.

Key developments driving the growth of AI include:

• Almost 70% of Fortune 500 companies now use Microsoft 365 Copilot
• Azure OpenAI Service usage has more than doubled in the past 6 months
• GitHub Copilot enterprise customers grew 55% QoQ

CFO amy hood Highlighting the strategic importance of investing in AI, he said: “In just two and a half years, our AI business is on track to exceed an annual revenue run rate of over $10 billion in the second quarter. This will be the fastest business in our history to reach

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why is it important: The company’s Azure cloud services recorded 33% growth, with AI services contributing about 12 points to that growth. However, Microsoft acknowledged that demand continues to exceed available capacity, prompting increased investment in infrastructure.

The rapid growth in AI revenue comes as Microsoft reported first-quarter overall revenue of $65.6 billion, up 16% year-over-year, while Microsoft Cloud revenue rose to $38.9 billion, representing 22% growth. Reached.

price action: Microsoft stock closed at $432.53 on Wednesday, up 0.13% on the day. Shares fell 3.71% in after-hours trading. Microsoft stock has risen an impressive 16.63% since the beginning of the year, according to data from Benzinga Pro.

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Disclaimer: This content is created in part using AI tools, and reviewed and published by Benzinga editors.