Microsoft's AI Investments Pay Off With Strong Revenue and Profit Growth

Revenue increased 13% in the latest quarter compared to a year earlier. Profit rose 27%.

Results showed early signs that Microsoft's investments in AI were beginning to boost sales, especially for its Azure cloud computing product.

Azure cloud revenue grew 29%, with about 3 percentage points from AI products like access to GPT-4. Over 18,000 organizations now use Azure AI services.

Microsoft's commercial cloud subscriptions accelerated, with 18% growth. The rollout of AI "Copilot" tools next month expected to further boost productivity suite.

Strong gaming revenue growth of 13% driven by new Xbox content and services like the Starfield video game release.