Microsoft Incorporates ChatGPT-Style Assistant to Office Apps, Invests in OpenAI
Tuesday 25 July 2023 22:34, UK – Microsoft has surpassed Wall Street expectations by posting better-than-expected revenues, driven by the growth of its cloud computing and office software business amidst the increasing demand for artificial intelligence (AI). In the fourth quarter, which ended in June, revenue rose to $56.2 billion (£43.56 billion), marking an 8% increase compared to the same period last year. This exceeded the 7% growth anticipated by analysts.
Satya Nadella, the Chairman and CEO of Microsoft, emphasized the company’s focus on leading the new AI platform shift. As tech giants compete to develop AI products and companies strive to adopt AI quickly, Nadella stated, “Organizations are asking not only how – but how fast – they can apply this next generation of AI to address the biggest opportunities and challenges they face – safely and responsibly.”
Investors and tech developers have been eager to establish a presence in the flourishing AI industry. Microsoft, as one of the main competitors in the AI race, has invested in OpenAI, the creator of the generative AI chatbot, ChatGPT. Additionally, Microsoft has invested in its own AI products. In February, the company unveiled a new Bing search engine powered by chatbot technology, gaining ground against its rival, Google. The following month, Microsoft announced an AI “copilot for work” that can write emails and help users catch up on missed meetings.
Microsoft is now incorporating the ChatGPT-style assistant into all of its Office apps, including Word, Teams, and Outlook. The growth of cloud computing at Microsoft was driven by its AI platform, Azure. Azure and other cloud services revenue grew by 26% compared to the previous year.
Despite the positive results, Microsoft’s shares experienced a slight decline as capital expenditure increased from $7.8 billion (£6 billion) the previous year to $10.7 billion (£8.29 billion) for the construction of new data centers. However, the stock price reached a record high last week following the announcement of a $30 (£23.25) monthly subscription for generative AI features in Microsoft’s software.
Overall, Microsoft’s incorporation of the ChatGPT-style assistant and its investments in OpenAI demonstrate the company’s commitment to leading the AI platform shift. With the growth of its cloud computing business and the increasing demand for AI, Microsoft is well-positioned to capitalize on the opportunities presented by the AI boom.