AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.
Microsoft is trying to make users use Copilot more by removing a popular and helpful dictionary feature in Microsoft Word.
Investors punished Microsoft with a 6% share drop on Thursday as hefty AI bets failed to drive a big increase in its cloud revenue, while Meta rose 4% after CEO Mark Zuckerberg assured Wall Street about growth with promises of a "really big year".
Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.
Microsoft is allowing Copilot+ PC users to test out the sexy new AI model from DeepSeek -- and on the NPU, no less.
In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online
Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year, and net income of $24.1 billion, which is up 10 percent year-over-year.
Microsoft reported lower-than-expected revenue growth for its AI and cloud divisions as scrutiny grows over tech's AI investments.
The tech giants vow to barrel ahead despite the jolt from China’s DeepSeek.
Microsoft has moved surprisingly quickly to bring R1 to its Azure customers.
Microsoft confirmed it will bring the DeepSeek R1 model to Azure cloud and GitHub in a move that it hopes will lessen its reliance on OpenAI's models.