AI is an expensive business, with just training a brand new model costing over $100 million.
However, at Microsoft a several billion dollars Investments in AI seem like paying off: CEO Satya Nadella said on a quarterly earnings release announced Wednesday that Microsoft’s AI business is “on track to surpass $10 billion in annual revenue next quarter” and turn out to be “the fastest company in our history to reach this milestone.”
The annual return on sales Predicts sales over a selected period based on previous sales.
Related: Is nuclear power needed to sustain AI? Microsoft is betting on it.
Microsoft has invested approx 14 billion dollars in OpenAI, the corporate behind ChatGPT. It also made several several billion dollars AI commitments, including an agreement to reopen Three Mile Island, a nuclear power plant near Harrisburg, Pennsylvania.
Microsoft CEO Satya Nadella. Photo by Ethan Miller/Getty Images
Nadella also identified within the conference call that it was about profits the primary quarter of fiscal yr 2025that Microsoft cloud revenue increased 22% year-over-year to $38.9 billion within the quarter ended September 30. Total sales rose 16% to $65.6 billion.
At Microsoft, “AI-driven transformation is transforming work, work artifacts and workflows across roles, functions and business processes,” Nadella said.
Although Microsoft’s earnings got here in higher than expected, the corporate’s shares fell decreased by greater than 5% on Thursday because forecast cloud revenue growth was lower than expected.
Related: These CEOs command the very best pay packages within the U.S., in line with a brand new report
Nadella was well compensated for running Microsoft: He received a salary increase of over $30 million for the fiscal yr ended June 30, leading to total compensation of $79.1 million in comparison with $48.5 million a yr ago.
Nadella’s compensation would have been $5.5 million higherbut he asked for various less Cybersecurity breaches.
In the meantime, there have been layoffs at Microsoft that had an impact almost 1,900 people in its gaming department in January.
Microsoft has it now about 228,000 Employees worldwide.
Related: Microsoft hits back at Salesforce, announcing latest AI agents that may tackle finance, sales and repair tasks
