"For years, Microsoft has treated AI not as a side project but as the foundation for its future. Its 2019 partnership with OpenAI gave Microsoft exclusive access to advanced models like GPT-4 , which it integrated across products, including Word's AI-powered summaries or Teams' real-time translation. AI wasn't bolted on; it's baked in. This strategy has fueled growth. In fiscal 2024, Azure's AI services saw triple-digit revenue jumps, contributing to overall cloud sales topping $110 billion."
"Microsoft committed $13 billion to OpenAI by 2023, securing priority compute resources and co-developing tools. CEO Satya Nadella has called AI "the runtime" for software, emphasizing its role in everything from enterprise analytics to consumer apps. Analysts credit this integration for Microsoft's edge over rivals like Amazon ( NASDAQ:AMZN ) and Google, with AI helping Azure capture 25% of the cloud market."
Microsoft made AI a central pillar across its ecosystem, integrating advanced models into Azure and Office 365 features like Copilot, Word summaries and Teams translation. The 2019 partnership with OpenAI provided priority access to models such as GPT-4 and accelerated product integration. Azure's AI services saw triple-digit revenue growth in fiscal 2024, helping cloud sales exceed $110 billion and contributing to an approximate 25% cloud market share. Microsoft committed roughly $13 billion to OpenAI by 2023, developed custom chips like Maia to optimize AI workloads, and pursued large-scale workforce training. Emerging signs of strain and changing dynamics with OpenAI raise questions about confidence in AI's growth trajectory.
Read at 24/7 Wall St.
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