Microsoft Office 365 was also a big hit for the company, drawing in 7% profit over the last quarter. ChatGPT is also set to be added to the platform soon, further expanding Microsoft’s portfolio of generative AI models. Adding OpenAI’s models, like GPT 3.5, Codex, and DALL-E 2, has resulted in many customers adopting the platform as an easy way to bring generative AI to their workflow. In the light of this partnership, Microsoft’s Intelligent Cloud services, which consists of its server products and public and private cloud services, grew by 18% over the last quarter. Cloud services have long been Microsoft’s primary source of revenue, with its OpenAI partnership adding more value to its existing services.Īs part of their multi-year partnership with OpenAI, Microsoft has gained access to the powerful models built by the think tank. MoneymakersĬonversely, the profits earned from Microsoft Cloud, continuing from the previous quarter, made the headliner in the earnings report. In addition to these disclaimers, there was another one against regulatory activity pertaining to competition rules-a direct reference to FTC’s moves against the Microsoft–Activision merger. These seem to be targeted towards the ongoing lawsuit against Microsoft regarding the use of GitHub code to train the Codex autocoder. While most of these are boilerplate inclusions, some notable disclaimers included issues regarding use of AI in their offerings that may result in competitive harm, claims that Microsoft has infringed IP of others, along with other claims that may result in adverse legal outcomes. In addition to this, the company also returned $9.7 billion to shareholders in the form of dividends in the FY23 Q2-an 11% decrease compared to FY22 Q2.Īnother notable inclusion in the release was a few disclaimers pertaining to forward-looking statements. The severance packages provided to laid off employees accounted for a cost of $800 million to the company. This move follows industry trends set by many of its fellow tech giants, with Microsoft cutting over 12,000 employees from its workforce. The company has conducted widespread layoffs over the last quarter as a long-term, cost-saving measure. The company also had minor loss in revenue for Office Consumer products and cloud services, but added more subscribers for the Microsoft 365 consumer suite. Even Windows, once among Microsoft’s primary money makers, has recorded a drop of 39% in OEM revenue. Microsoft has continued to lose money while it acquires more users for Xbox Game Pass, as denoted by their 12% revenue drop in this segment. In hindsight, this could have been the reason for the tech giant to shutter its HoloLens team in the latest round of layoffs. These included the first-party devices segment, known as ‘Surface’, which recorded a drop of 39%. While many offerings by Microsoft were evidently profitable, a number of them witnessed a downturn in the last quarter. But, what does this varied profit-loss pattern across offerings entail for the future of Microsoft? Lossmakers However, other offerings, such as Microsoft Surface, Windows, and Xbox, were deemed lossmakers for the company. Other big earners for the company included Office 365, LinkedIn, Bing, and Microsoft server products. The release showed that Azure was one of the biggest revenue drivers for the company in the last quarter, with revenue growing by $27.1 billion on the back of the AI services provided on the platform. In a recent statement, Microsoft released the specifics of their second quarter earnings.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |