Techonology

Microsoft AI continues to increase spending as the profit increases by 10%

Investors were concerned about how much money is spending on Artificial Intelligence, Big Technology Companies did not get much relief from Microsoft when they reported their latest financial results on Wednesday.

In its most recent quarter, which ended on 31 December, Microsoft maintained its fast drive to create a data center to power cloud computing and artificial intelligence. It spent $ 22.6 billion on capital expenses, almost doubled a year ago.

Microsoft has said that it will spend about $ 80 billion in data centers in this financial year, which ends in June. This is sprinting because it has said that it does not have enough ability to meet customers’ demand for artificial intelligence and cloud computing services.

This expenditure came against the background of solid overall growth in both profits and revenue for the tech veteran. A year ago, more than 12 percent of revenue was $ 69.6 billion. The profit rose 10 percent to $ 24.1 billion. The results defeated Wall Street’s expectations and Microsoft’s own predictions.

“AI becomes more efficient and accessible, we will see more demand,” Microsoft CEO Satya Nadella said in a call with investors.

Questions about AI’s expenses among large technology companies became more important after a Chinese start-up, Deepsek, Wall Street shocked this week with an advanced AI system, the company said that comparison of major technical firms It was developed for a fraction of electricity and cost. ,

Microsoft was the first major cloud computing company to report financial results since the revelation of the Deepsek, and its stock was about 5 percent below in the hourly business.

Microsoft’s major cloud computing service, increase in sales of Azure, slightly below the expectations of Wall Street, slowed down to 31 percent. More than one third of that development came with artificial intelligence. Investors are hoping that Azure growth once Microsoft has more ability to offer customers this year, but authorities told investors that it could be to get sufficient capacity and run.

The company said AI sales crossed the annual run rate of $ 13 billion.

The sale of Microsoft’s Artificial Intelligence involves reaching systems made by Openai and providing computing power, when customers use Openai products directly from start-ups. Microsoft is the largest investor in Openai and recently said that his financial system is ending in 2030.

The company has been working to provide access to the AI ​​system beyond people developed by OpenAII for more than a year, and on Wednesday, adding a system to the AI ​​model’s own catalog from Dipsek. And last week, when Openi announced the $ 100 billion Stargate project with Oracle and other partners, Microsoft said he had resumed his deal with OpenaiI.

Azure is no longer the only provider of data centers for Openai to develop new systems. Microsoft now has DIB to spend on infrastructure for Openai, but it cannot say and give priority to its extra resources – if it has them – elsewhere.

Karl Kiersted, an analyst of UBS, wrote in a note on Monday, “One day like today, he looks like a clever.”

Deepsek’s progress has added uncertainty in the price of Microsoft’s investment in OpenAI, but they can also help Microsoft and his associates to spend less on capital expenditure, which is “generally a good thing,” Wrote

Microsoft’s Finance Head Amy Hood told investors that the company would increase capital expenditure in the next financial year, but the growth would be slow.

(New York Times sued Openai and Microsoft, claiming copyright violation of news material related to AI system. Both companies denied the claims of the suit.)

In other parts of the business of Microsoft, the sale of its online productivity equipment for businesses, including Excel, teams and Word, increased by 15 percent, except for the currency in currency. According to Bank of America analysts, about 5 percent of the eligible Microsoft 365 commercial customers have upgraded to include AI partner of Copillot, Microsoft.

Microsoft’s individual computing business was essentially flat in $ 14.7 billion.

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