Microsoft rides AI wave, revenue up 7%

Microsoft-backed OpenAI’s ChatGPT has become a rage worldwide, which has the capabilities to transform many industries…reports Asian Lite News

Riding on its Cloud and the new AI business, Microsoft has reported $52.9 billion in sales, up 7 per cent with net income at $18.3 billion, which increased 9 per cent (year-on-year) in its quarter ended March 31.

Microsoft-backed OpenAI’s ChatGPT has become a rage worldwide, which has the capabilities to transform many industries.

“The world’s most advanced AI models are coming together with the world’s most universal user interface — natural language — to create a new era of computing,” said Satya Nadella, chairman and CEO, Microsoft.

“Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI,” he said in a statement late on Tuesday.

Microsoft Cloud reported revenue of $28.5 billion, up 22 per cent year-over-year, said the company.

Revenue in Productivity and Business Processes was $17.5 billion and increased 11 per cent, while LinkedIn revenue increased 8 per cent.

However, sales in the ‘More Personal Computing’ segment was $13.3 billion and decreased 9 per cent and Windows OEM revenue decreased 28 per cent.

Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.

Meanwhile, Microsoft Chairman and CEO Satya Nadella said LinkedIn now has 100 million members in India, up 19 per cent year-on-year.

The Microsoft-owned LinkedIn saw record engagement in the March quarter as more than 930 million members globally now turn to the professional social network to connect, learn, sell and get hired.

“Member growth accelerated for the seventh consecutive quarter as we expanded to new audiences. We now have 100 million members in India, up 19 per cent,” Nadella said during the company’s Q3 2023 earnings call late on Tuesday.

As Gen Z enters the workforce, “We saw 73 per cent year-over-year increase in the number of student sign-ups,” Nadella added.

LinkedIn Talent Solutions continues to help hirers connect to job seekers and professionals to build the skills they need to access opportunity.

“Our hiring business took share for the third consecutive quarter. The excitement around AI is creating new opportunities across every function from marketing, sales and finance to software development and security,” said Nadella.

The LinkedIn revenue increased 8 per cent in the March quarter for the tech giant. In 2016, Microsoft acquired LinkedIn for more than $26 billion.

The platform has introduced new AI-powered features, including writing suggestions for member profiles and job descriptions and collaborative articles.

“Our exclusive partnership with Netflix brings differentiated premium video content to our ad network, and our new Copilot for the web is reshaping daily search and web habits,” Nadella informed.

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