Microsoft reveals massive financial growth once again, cloud and AI lead the way
Posted by:
Olivia Smith
Microsoft’s revenue continues on an upward trajectory, boosted by Artificial Intelligence tools. The tech giant’s quarterly revenue has surged by 12% year-over-year, surpassing expectations with a total figure of $69.6 billion in the final quarter of 2024. CEO Satya Nadella announced a remarkable 175% increase in the annual revenue run rate of Microsoft’s AI business, now soaring to $13 billion. Microsoft’s CFO Amy Hood confirmed a 21% rise in Microsoft Cloud revenue to $40.9 billion, attributing the success to the surging demand for AI tools and data centers. Notable recent AI launches include Copilot in Excel with Python, Microsoft Places, LinkedIn upgrades, and the establishment of two new data center regions in New Zealand North and Taiwan North. Business growth has been particularly strong for Microsoft 365 Consumer and Commercial cloud services, with double-digit growth rates. While the company saw minor increases in Windows OEM and Devices revenue, as well as Xbox content and services revenue, some customers have expressed dissatisfaction due to recent price hikes in Microsoft 365 subscriptions. Despite some challenges, Microsoft’s overall financial success is evident, indicating a promising future for the company’s AI-driven services.
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