{"id":13769,"date":"2024-11-01T03:57:10","date_gmt":"2024-11-01T03:57:10","guid":{"rendered":"https:\/\/imsfund.com\/?p=13769"},"modified":"2024-11-01T03:57:10","modified_gmt":"2024-11-01T03:57:10","slug":"microsoft-ai-business-could-pass-10-billion-next-quarter","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/11\/01\/microsoft-ai-business-could-pass-10-billion-next-quarter\/","title":{"rendered":"Microsoft: AI Business Could Pass $10 Billion Next Quarter"},"content":{"rendered":"


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AI is an expensive business, costing upwards of $100 million simply to train<\/a> a new model.<\/p>\n

At Microsoft, though, a multi-billion dollar<\/a> investment in AI appears to be paying off: CEO Satya Nadella said on a quarterly earnings call<\/a> on Wednesday that Microsoft’s AI business “is on track to surpass an annual revenue run rate of $10 billion next quarter” and become “the fastest business in our history to reach this milestone.”<\/p>\n

The annual revenue run rate<\/a> projects revenue over a period of time based on previous revenue.<\/p>\n

Related: <\/b>Will It Take Nuclear Power to Sustain AI? Microsoft Is Betting on It.<\/a><\/p>\n

Microsoft has invested about $14 billion<\/a> into OpenAI, the company behind ChatGPT. It has also made several multi-billion dollar<\/a> AI commitments, including a deal<\/a> to reopen Three Mile Island, a nuclear power plant near Harrisburg, Pennsylvania.<\/p>\n

\"\"Microsoft CEO Satya Nadella. Photo by Ethan Miller\/Getty Images<\/sup><\/i><\/p>\n

Nadella also pointed out on the call, which went over earnings for the first quarter of fiscal year 2025<\/a>, that Microsoft Cloud revenue was up 22% year over year, growing to $38.9 billion for the quarter ending September 30. Revenue overall<\/a> increased 16% to $65.6 billion.<\/p>\n

At Microsoft, “AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” Nadella said.<\/p>\n

Though Microsoft’s earnings were better than expected, the company’s shares fell by more than 5%<\/a> on Thursday because its predicted cloud revenue growth was less than expected.<\/p>\n

Related: <\/b>These CEOs Have the Biggest Pay Packages in the U.S., According to a New Report<\/a><\/p>\n

Nadella was well-compensated for leading Microsoft: He received a pay increase<\/a> of over $30 million for the fiscal year ending June 30, resulting in an overall pay of $79.1 million compared to $48.5 million a year prior.<\/p>\n

Nadella’s compensation would have been $5.5 million higher<\/a>, but he asked for it to be lower following a series of cybersecurity breaches<\/a>.<\/p>\n

Meanwhile, Microsoft went through layoffs affecting nearly 1,900 people<\/a> in its gaming division in January.<\/p>\n

Microsoft now has about 228,000<\/a> employees globally.<\/p>\n

Related: <\/b>Microsoft Strikes Back at Salesforce, Announces New AI Agents That Can Take Over Finance, Sales, and Service Tasks<\/a>\n <\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

AI is an expensive business, costing upwards of $100 million simply to train a new model. At Microsoft, though, a multi-billion dollar investment in AI appears to be paying off: CEO Satya Nadella said on a quarterly earnings call on Wednesday that Microsoft’s AI business “is on track to surpass an annual revenue run rate […]<\/p>\n","protected":false},"author":5,"featured_media":13770,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/assets.entrepreneur.com\/content\/3x2\/2000\/1730401305-Nadella-GettyImages-1921159214.jpg?format=pjeg&auto=webp","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-13769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/13769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=13769"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/13769\/revisions"}],"predecessor-version":[{"id":13771,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/13769\/revisions\/13771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/13770"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=13769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=13769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=13769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}