Propelled by increasing demand for artificial intelligence services, Microsoft cloud solutions, which includes the Azure platform, was the star of the quarter, bringing in $38.9 billion for 22 percent growth year-over-year. Revenue was $65.6 billion, up 16 percent, while profit increased by 11 percent, to $24.7 billion. While Microsoft financials don’t break out AI — now embedded across numerous products — Chairman and CEO Satya Nadella says AI “is on track to surpass an annual revenue run rate of $10 billion” by December 31, “making it the fastest business in our history to reach this milestone.” Continue reading AI Surges: Microsoft Quarterly Revenue Climbs to $65.6 Billion

Qualcomm is expanding beyond mobile and into the desktop market in a big way, bringing its AI-enabled Snapdragon X series chips to “all PC form factors,” CEO Cristiano Amon said onstage at Computex this week. Under the theme of “the PC reborn,” Amon said the Snapdragon X Elite and Snapdragon X Plus processors powering Microsoft’s Copilot+ PC experiences are also upping their mobile game. In addition to improving AI experiences with “the world’s fastest and most efficient NPU for laptops,” the chips can deliver “up to multiple days of battery life,” unfettered those on the go from power outlets. Continue reading Qualcomm All-In on Copilot+ PCs Boosting Speed, Battery Life

Microsoft is debuting a new category of Windows PCs optimized for artificial intelligence. Called Copilot+ PCs, the tech giant is initially introducing it on Surface devices and through OEMs Acer, Asus, Dell, HP, Lenovo and Samsung. Availability begins June 18, with pre-orders starting now at prices of $999 and up. Microsoft says the new architeccture powers “the fastest, most intelligent Windows PCs ever built,” with silicon capable of 40+ TOPS (trillion operations per second) as well as “all–day battery life and access to the most advanced AI models.” The company describes this new wave of PCs as “just the beginning.” Continue reading Microsoft Pivots Windows to AI OS, Launching Copilot+ PCs

Responding to a government assessment of recent cyberattacks, Microsoft CEO Satya Nadella issued a company-wide memo prioritizing security. “If you’re faced with the tradeoff between security and another priority, your answer is clear: Do security,” the executive wrote. “In some cases, this will mean prioritizing security above other things we do, such as releasing new features or providing ongoing support for legacy systems,” Nadella added. The escalation sees Microsoft expanding the scope of its Secure Future Initiative based on government recommendations and insights gained from breaches linked to state-sponsored Russian hackers. Continue reading Microsoft Doubles Down on Security Following Cyberattacks

Microsoft revenue was $61.9 billion in the quarter ending March 31, up 17 percent compared to the same period a year ago. Profit was up 20 percent, to $21.9 billion, despite an increase in capital expenditure to purchase Nvidia GPUs for training and running AI models. The performance smashed analyst predictions, sending the stock up 5 percent in after-hours trading. Revenue for the Microsoft Cloud division overall was $35.1 billion, up 23 percent year-over-year, fueled largely by customers using it to host resource intensive AI services. Revenue in the Intelligent Cloud sector was $26.7 billion, a 21 percent uptick. Continue reading Microsoft Cloud Buoys Quarterly Revenue to Nearly $62 Billion

Microsoft profits were up 33 percent year-over-year to $21.9 billion in the quarter ending December 31, its fiscal Q2 for 2024. The quarterly growth was the company’s strongest in more than two years. Executives credited it to excitement about artificial intelligence services and the resulting demand for cloud services including Microsoft Azure. Earlier this month, Microsoft achieved a $2.89 trillion market valuation, overtaking Apple as the world’s most valuable public company, and this week it surged past $3 trillion. Revenue was $62 billion for the quarter, up 18 percent. Continue reading Microsoft Q2 Profits Surge 33 Percent Driven by AI and Cloud

The Federal Trade Commission has opened an investigation into Big Tech’s artificial intelligence arms race. Specifically, the agency has ordered five companies to provide information under what it calls a “6(b) inquiry,” targeting Amazon and Google’s strategic alliance with Anthropic, and Microsoft’s investment in OpenAI. The scrutiny aims “to build a better internal understanding of these relationships and their impact on the competitive landscape.” In other words, the government does not want another free for all, along the lines of social media’s growth, which saw big players acquire startups competing in the space. Continue reading FTC Is Investigating AI Investments by Major Tech Companies

Microsoft is releasing Phi-2, a text-to-text small language model (SLM) that outperforms some LLMs, yet is light enough to run on a mobile device or laptop, according to Microsoft CEO Satya Nadella. The 2.7 billion-parameter SLM beat Meta Platforms’ Llama 2 and Mistral 7B from France (each with 7 billion parameters) says Microsoft, emphasizing its complex reasoning and language comprehension are exceptional for a model with less than 13 billion parameters. For now, Microsoft is making it available “for research purposes only” under a custom license. Continue reading Microsoft Says Phi-2 Can Outperform Large Language Models

Sam Altman has wasted no time since being rehired as CEO of OpenAI on November 22, four days after being fired. This week, the 38-year-old leader of one of the most influential artificial intelligence firms outlined his “immediate priorities” and announced a newly constituted “initial board” that includes a non-voting seat for investor Microsoft. The three voting members thus far include former Salesforce co-CEO Bret Taylor as chairman and former U.S. Treasury Secretary Larry Summers — both newcomers — and sophomore Adam D’Angelo, CEO of Quora. Mira Murati, interim CEO during Altman’s brief absence, returns to her role as CTO. Continue reading Altman Reinstated as CEO of OpenAI, Microsoft Joins Board

Just four days after being pushed out by the OpenAI board, Sam Altman will be reinstated as CEO of the company he co-founded. His return as chief executive was announced in a series of online posts. In addition, most of the company’s board members will be replaced. Following Altman’s firing, Microsoft CEO Satya Nadella had announced Altman would lead a new advanced AI research team to run independently within Microsoft. However, hundreds of OpenAI employees, including co-founder and board member Ilya Sutskever, continued to push for Altman’s return, threatening to quit if he was not reinstated. Continue reading In Latest Twist, Sam Altman Is Reinstated as CEO of OpenAI

Rumors were running rampant over the weekend as an unanticipated executive shuffle played out at OpenAI. It began on Friday when CEO Sam Altman was pushed out by the OpenAI board. President and co-founder Greg Brockman quickly resigned in solidarity, followed by several top researchers. Reports circulated the following day that investors were pressuring the board into reconsidering its decision, but by Sunday evening, OpenAI announced that former Twitch leader Emmett Shear would serve as the new interim chief. Shortly after, Microsoft CEO Satya Nadella said Altman, Brockman and other OpenAI employees would join Microsoft to lead an advanced AI research unit. Continue reading Sam Altman Joins Microsoft After Abruptly Ousted by OpenAI

Microsoft Ignite 2023 was all about the transformative change of artificial intelligence, and the event was the setting for Bing Chat’s debut as Bing Copilot. The company also introduced three additional Copilot offerings: Copilot for Azure, Copilot for Service and Copilot in Dynamics 365 Guides. The new Copilot Studio gained tools for connecting Copilots in Microsoft 365 apps — including Word, Excel, PowerPoint, the Edge browser and Windows — to third-party data. In addition, the company showcased software for client-configured chatbots, and introduced its first custom designed AI processor, the Maia 100 chip. Continue reading Microsoft Rebrands Bing as Copilot, Debuts First Custom AI

Now anyone can make their own GPT chatbot, for fun or productivity — no coding skills necessary — and soon will be able to list it on a marketplace called the GPT Store. This was among the news announcements to come out of OpenAI’s first developer conference — OpenAI DevDay in San Francisco — where a new, lower-priced model called GPT-4 Turbo with 128K context, was unveiled, along with a new Assistants API, GPT-4 Turbo with Vision and the DALL-E 3 API. Now in preview, GPT-4 Turbo “is more capable and has knowledge of world events up to April 2023,” according to OpenAI. Continue reading OpenAI Intros GPT-4 Turbo, Creator Chatbots at Dev Confab

Last week, Microsoft announced its 365 Copilot artificial intelligence Office add-on was being made generally available for purchase. Forrester Research projects that by 2024 nearly 7 million U.S. knowledge workers will use the AI assistant, which integrates with Word, Excel and other Office productivity tools and costs $30 per person per month. According to investment bank Piper Sandler’s forecast, 18 percent of eligible users will use Copilot by 2026, translating to more than $10 billion in revenue by 2026. Microsoft appears to be introducing Copilot in a staggered rollout with its largest enterprise customers first in line. Continue reading Microsoft Rolls Out 365 Copilot AI for Enterprise Customers

During its Surface and AI event in New York City on Thursday, Microsoft introduced a pair of new Surface laptops and an array of generative AI upgrades to Bing Chat, Windows Copilot and more. Taking center stage in hardware was the company’s more powerful Surface Laptop Studio 2 and the ultra-portable Surface Laptop Go 3. Also unveiled was the Surface Go 4 for Business, the latest miniature version of its Surface Pro tablet, and the company’s large touchscreen Surface Hub, designed for office use. Beginning this month, Microsoft rolls out Copilot — “your everyday AI companion” — in a free Windows 11 update, followed by Bing, Edge, and Microsoft 365 this fall. Continue reading Microsoft Unveils Next-Gen Surface Devices, New AI Features