News from the AI & ML world
DeeperML
@www.geekwire.com
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Microsoft's AI division is experiencing substantial growth, reaching a $13 billion annual revenue run rate, marking a 175% year-over-year increase. This rapid growth is fueled by the increased adoption of the company's AI services. However, this surge in AI revenue comes with increased scrutiny regarding Microsoft's spending on AI infrastructure. This is reflected in a record high capital expenditure of $22.6 billion for the last quarter, a figure that has raised concerns among investors despite overall revenue exceeding Wall Street expectations. Microsoft has also indicated a slight decrease in the anticipated growth of Azure for the next quarter.
Microsoft has also revealed that its professional networking platform, LinkedIn, has surpassed $2 billion in Premium subscription revenue in the past year. Overall LinkedIn revenue also rose 9% year-over-year. The increase in subscription revenue underscores the platform's efforts to add more features to its paid tiers, driving user engagement. However, while this is a significant milestone, the company has also acknowledged that future revenue growth is likely to be in the “low- to mid- single digits” due to pressures in the Talent Solutions division. Despite the strength of the AI sector, the company’s gaming division is not performing as well with Xbox hardware sales down significantly.
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Microsoft has also revealed that its professional networking platform, LinkedIn, has surpassed $2 billion in Premium subscription revenue in the past year. Overall LinkedIn revenue also rose 9% year-over-year. The increase in subscription revenue underscores the platform's efforts to add more features to its paid tiers, driving user engagement. However, while this is a significant milestone, the company has also acknowledged that future revenue growth is likely to be in the “low- to mid- single digits” due to pressures in the Talent Solutions division. Despite the strength of the AI sector, the company’s gaming division is not performing as well with Xbox hardware sales down significantly.
ImgSrc: cdn.geekwire.co
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References :
- techcrunch.com: Microsoft reports Q2 LinkedIn revenue up 9% YoY, and Satya Nadella says that LinkedIn passed a record $2B in Premium subscriptions revenue in the last 12 months
- www.geekwire.com: Satya Nadella says Microsoft's AI business has surpassed an annual revenue run rate of $13B, up 175% YoY, as the company faces new scrutiny over AI spending
- Techmeme: Satya Nadella says Microsoft's AI business has surpassed an annual revenue run rate of $13B, up 175% YoY, as the company faces new scrutiny over AI spending
Classification:
- HashTags: #MicrosoftAI #Azure #TechRevenue
- Company: Microsoft
- Target: Microsoft Investors
- Product: Microsoft AI
- Feature: AI Revenue
- Type: AI
- Severity: Informative