Microsoft invests 35 billion euros in "AI" - Reports over 77 billion dollars in revenue in the last quarter
Microsoft beat sales forecasts in the latest quarter, reporting $77.7 billion in revenue and $30.8 billion in profit. However, the company surprised some investors with the scale of its spending on cloud infrastructure and artificial intelligence, sending shares down more than 3%.
The tech giant said it spent almost $35 billion in the July-September quarter on capital expenditures supporting demand for artificial intelligence and the cloud. Roughly half of that went to computer chips, with the rest going to data centers.
The expenses dampened the enthusiasm of Microsoft's report of a 22% increase in quarterly profit, to $30.8 billion, or $4.13 per share.
The company said these results do not include the impacts of investments in OpenAI, an attempt to "clarify" how these losses affected Microsoft's core business.
The results came a day after a new deal with OpenAI lifted Microsoft's valuation to $4 trillion for the second time this year.
Although it is no longer the exclusive provider of cloud infrastructure for OpenAI, the tech giant will retain commercial rights to the startup's products until 2032 and will take about 27% of the shares in OpenAI's new for-profit unit.
Microsoft's value had previously topped $4 trillion (€3.44 trillion) in July, becoming only the second company after Nvidia to reach that figure. The sky-high valuations reflect investor enthusiasm for artificial intelligence, even as some worry it could be a failure if its products fail to transform the market.
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